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The Do’s and Don’Ts of a Reverse Mortgage

Posted onJuly 13/2020By

When it comes to a reverse mortgage, there are certain dos and don’ts that you should be aware of. A reverse mortgage is a financial product that allows seniors to gain access to a subset of their home’s equity to boost their retirement savings. Even though reverse mortgages have been available for over 25 years in this country, many have doubts about whether or not a reverse mortgage is right for them and their loved ones. Here, we will look into the do’s and don’ts of a reverse mortgage so that you will know what you are getting into before…

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Reverse Mortgages: Ten Reasons Why Using Home Equity is Not a Choice Plan

Posted onDecember 09/2019By

Reverse mortgages exalted as a new source of income for baby boomers are far from a choice retirement plan, despite a guaranteed income. It is a financial obligation in which a homeowner relinquishes equity in their home to a reverse mortgage provider, in exchange for regular cash payments, usually to bolster retirement income. Undeniably, taking out a reverse mortgage seems logical for retirees who are house-rich, but cash or cash-flow poor. As with all financial tools, it’s imperative that you are aware there are numerous reasons to justify why using home equity is not a choice plan. The following ten reasons should compel you to analyze your options and the potential consequences of a reverse mortgage. 1. Your loan is capped Your reverse mortgage will be capped at 55 percent of the value of your house. It is dependent on your age, your stake in equity, the appraisal and location…

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Reverse Mortgages: The Facts Up Front

Posted onDecember 02/2019By

The Deliberation of Reverse Mortgages The theme of reverse mortgages seems to be on-trend, with the media honing in on the fact that ample retirement savings are a significant concern for so many Canadian seniors as they slowly but systematically deplete their income sources. Options are finite, and typically your home becomes the only source of equity to be leveraged. Most notably, selling one’s property has been the universal solution, although seldom a gratifying concession. Reverse mortgages offer a certain appeal to homeowners as a secure solution, granting them access to their home equity and converting it into tax-free cash. In Canada, beginning from the age of 55, funds from your reverse mortgage may be utilized as you see fit. You may aspire to achieve something you covet, such as world travel and home renovations, or to alleviate debt, assist in healthcare expenses, and supplement your income, virtually developing your…

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How Does a Reverse Mortgage Work?

Posted onSeptember 05/2017By

A reverse mortgage is a home equity loan directed specifically at elderly homeowners. A reverse mortgage can assist retirees in order to improve their cash flow, afford larger purchases, or manage unexpected expenses. With a reverse mortgage, monthly payments aren’t necessary. Rather, the bank makes payments for you, which are taken out of your home equity. The loan is paid off once the borrower passes away, sells the home, or moves permanently. With a reverse mortgage, you can also never owe more than the value of the home. Additionally, if there is equity left over after the loan is repaid, you or your heirs will be able to keep the difference. Reverse mortgages are specifically targeted for those over 62. If any of the following apply to you, you may be a good candidate for a reverse mortgage: You own your home outright or have a small mortgage. You’re not…

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Which Types Of Properties Qualify For A Reverse Mortgage?

Posted onNovember 07/2016By

A reverse mortgage allows homeowners to draw on some of their home equity. This is particularly beneficial for seniors who live alone in their own homes. In this arrangement, the recipient receives a monthly allowance from the lending institution. Unlike with a regular mortgage, the recipient does not pay monthly instalments, but is still obligated to pay the costs that come with homeownership, such as insurance, property taxes and maintenance. Qualification for this type of mortgage depends on various factors such as property type. The following types of properties are eligible for a reverse mortgage. Single-Family Dwellings This is the most common type of home that qualifies for a reverse mortgage. Seniors often live alone; therefore, it makes sense to benefit financially from your home without having to sell it. The main criterion to be met is that the home in question is the principal residence. Multi-Family Homes Multi-family homes…

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