The Benefits of a Reverse Mortgage
A reverse mortgage is a loan that allows homeowners aged 55+ to borrow money against the equity in their home.
What is a Reverse Mortgage?
As mentioned earlier, a reverse mortgage is a loan that allows homeowners aged 55+ to borrow money against the equity in their home. Unlike a traditional mortgage, the borrower does not have to make monthly payments. Instead, the loan is repaid when the homeowner sells the property, moves out, or passes away.
The amount of money that can be borrowed depends on the value of the home, the borrower's age, and the equity available. The older the borrower, the more money they can borrow. In BC, the maximum amount that can be borrowed is 55% of the home's appraised value.
Highly respected in the industry for our transparency and professionalism, Key Momentum Mortgages Ltd., located in Langley, BC, has earned the trust of our customers by ensuring they are treated with the utmost care and respect. Deal must fund within 90 days of submission to be eligible. Reimbursement for out-of-pocket expenses will be made within 60 days of mortgage closing.
What Are Some Benefits of a Reverse Mortgage?
Access to Cash
One of the most significant benefits of a reverse mortgage is that it provides homeowners with access to the equity in their property without having to sell it or move out. This can be especially useful for those who are retired and living on a fixed income. They may need extra cash to cover expenses such as medical bills or home repairs, or they may want to take a dream vacation or help their children financially.
No Monthly Payments
Another advantage of a reverse mortgage is that there are no monthly payments required. This can be a huge relief for retirees who may be struggling to make ends meet. The loan is repaid when the property is sold or when the homeowner moves out or passes away.
Flexibility
A reverse mortgage is a flexible financial tool that can be customized to meet the borrower's needs. The borrower can choose to receive a lump sum payment, a line of credit, or a combination of both. They can also choose to receive the money in installments over time.
Low Interest Rates
Reverse mortgages typically have lower interest rates than other types of loans, such as credit cards or personal loans. This can make them an attractive option for those who need to borrow money but want to keep their costs as low as possible.
Tax-Free Cash
The money that is borrowed through a reverse mortgage is tax-free. This means that homeowners can access the equity in their property without having to pay income tax on the money they receive. This can be a significant advantage for those who are on a fixed income and may be in a lower tax bracket.
Non-Recourse Loan
A reverse mortgage is a non-recourse loan, which means that the borrower is not personally liable for the debt. If the loan amount exceeds the value of the property when it is sold, the lender cannot come after the borrower or their estate for the difference. This can be a significant advantage for those who are concerned about leaving debt to their heirs.
Stay in Your Home
Perhaps the most significant benefits of a reverse mortgage is that it allows homeowners to stay in their home. They can access the equity in their property without having to sell it or move out. This can be especially important for those who have lived in their home for many years and have an emotional attachment to it.
Laura Mackie, AMP
Mortgage Broker
P 778.878.5350
Over 65+ and looking for a reverse mortgage? How can Key Momentum Mortgages Ltd. serve you?
We know how important your home is to you, that's why our team at Key Momentum Mortgages, Ltd. will be with you every step of the journey as you look at how a reverse mortgage can help you. We'll help you understand the benefits of a reverse mortgage and how they can give you peace of mind.
Call us today at 778.878.5350 or email us using the short form above to set up a time to connect. We look forward to serving you.
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