The term reverse mortgage might be pretty unfamiliar to some of you. Reverse mortgage refers to the amount of loan secured by the equity prevailing in your home. This equity is the one that requires no further payments as long as the couple remains to stay at home. When the house is sold, the mortgage amount coupled with the interest outstanding is paid.
Certain conditions decide if you are eligible for a reverse mortgage or not. These factors include:
- You and your spouse’s age
- Type of living place (apartment, condo, other forms)
- The current value of the place
- Location of the dwelling (determined by the unique postal code of the area)
Keep reading to know more about Mortgage Rates in Vancouver.
Advantages of reverse mortgage rates
· Serves as a financial tool: If your finances are running low, you can trade-in your house or dwelling for some finances. In addition, if you have appropriate resources, you can use a reverse mortgage for planning your finances.
· Ensures flexibility: The reverse mortgage is a kind of loan. Hence, it gives you the benefit of receiving the payment in:
1. Lump-sum
2. Annuity
3. Credit line
The credit line gives you even more flexibility, and it is because it allows you to get cash in emergencies.
You are still the owner: With a reverse mortgage, the ownership of your dwelling remains with you. The only work you have to do is pay the taxes and insurance charges on time.
Don’t worry about default: Another added benefit of the reverse mortgage is a low risk of default. In the case of a home equity loan, you have to worry about timely payments since your house can get taken from you. However, in the case of a reverse mortgage, you don’t have to worry about monthly payments. In addition, you don’t have to pay any amount until you leave the house permanently.
No tax liability: As stated above, a reverse mortgage is a loan. Therefore, the money you receive from a reverse mortgage is devoid of any tax liability. Whether you receive the payment in lump sum or instalments, it will be free of tax.
Wrapping up
A reverse mortgage is a new financial planning tool that will help you improve your immediate finances. The benefits like no tax liability, flexible payment options, minimal risk of default, and many more have made it an attractive option for senior citizens to live life with a little less stress. Hence, it is why a reverse mortgage is popular in some cities like Vancouver. You can visit Fitright Mortgage for Mortgage rates in Vancouver.
Kyle Mayers is the author of this article. For more details about Mortgage Brokers in Vancouver please visit our website: reversemortgagesinbc.com
A reverse mortgage allows people 55 years old and older to take advantage of the equity they have built for their home.
Find a reverse mortgage lender that can offer close to the value of your home’s equity.
You only need to pay the loan when you sell your home or move out.
Not all reverse mortgage lenders are the same.
Someone is going to come and appraise your home to determine its value.
You also need to consider the closing costs and the origination fees.
