The writer is a reverse mortgage broker in Canada. He specializes in reverse mortgages to help seniors life their life in dignity. Reverse mortgages can greatly assist the elderly in living their lives to the fullest.
What’s the difference between a home equity loan and a reverse mortgage? A reverse mortgage is a home equity loan without a payment. You do not repay the loan as long as the home remains your principal residence. Your income and credit rating is not considered when qualifying for the loan. There is no requirement that you requalify each year.
With a home equity loan, you must make regular payments to repay the loan. These payments begin as soon as the loan is originated. To qualify for such a loan, you must earn a monthly income great enough to make those payments. If you fail to make the monthly payments, the lender can foreclose, and you can be forced to sell your home. In addition, you may be required to requalify for a home equity loan each year. If you do not requalify, the lender may require you to pay the loan in full immediately. So while both the reverse mortgage and the home equity loan enable you to turn the equity in your home into spendable dollars, there are some important differences between the two types of mortgages.
Who helps to clarify the reverse process? All potential borrowers must first meet with an independent reverse mortgage counselor before filling out an application. The counselor’s job is to educate and inform consumers about the various reverse programs and the alternative options available. This required counseling session is at no cost to the borrower and can be done in person or over the telephone.
A brokers mortgage in canada can fine tune the mortgage product for you. An expert mortgage broker is essential to understand your Vancouver mortgage options.