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Reverse Mortgages
If you're 55 or older, you can purchase a home or refinance your home with a reverse mortgage, it could be the solution to unlocking the equity in your home while staying in it. With Your Mortgage Needs, we make the process easy and stress-free, so you can enjoy the financial freedom you deserve. Whether it’s supplementing your retirement income or covering unexpected expenses, we’ll guide you through the options to help you make the best decision for your future.
If you’re 55 or older, a reverse mortgage can help you access up to 55% of your home’s equity without selling your home.
Why Consider a Reverse Mortgage?
- Supplement your retirement income.
- Cover unexpected expenses or help with major purchases.
- Stay in the home you love while leveraging its value.
How It Works:
- Borrow against your home’s equity with no monthly payments required.
- Repay the loan when you sell the home or from your estate.
Common Questions About Reverse Mortgages:
- Will I still own my home?
Yes, you retain ownership. - What happens to my estate?
Any remaining equity belongs to you or your heirs after the loan is repaid.
We’ll help you understand if this option fits your needs and secure the best solution.
FAQs for Reverse Mortgages
What is a reverse mortgage?
A reverse mortgage allows homeowners aged 55 and over to access up to 55% of their home's equity without selling the property. The loan is repaid when you sell the home or move out.
Government of Canada
How much can I borrow with a reverse mortgage?
The amount depends on factors like your age, home's value, and location. Older homeowners with higher-value homes can typically borrow more.
What are the costs associated with a reverse mortgage?
Costs may include higher interest rates than traditional mortgages, home appraisal fees, setup fees, and legal fees. These can often be financed through the reverse mortgage itself.
Government of Canada
Will I still own my home?
Yes, you retain ownership and can live in your home as
How does interest accrue on a reverse mortgage?
Interest is added to the loan balance over time, meaning the amount owed increases. However, you don't have to make regular payments; the loan is repaid when you sell the home or move out.
Government of Canada
Can I make payments on a reverse mortgage?
While not required, some lenders allow voluntary payments to reduce the principal and interest accumulation.
What happens if the loan amount exceeds the home's value?
In Canada, reverse mortgages are non-recourse loans, meaning you or your estate won't owe more than the home's fair market value at the time of sale.
Government of Canada
Are there any restrictions on how I can use the funds?
No, you can use the funds for any purpose, such as home renovations, medical expenses, or supplementing retirement income.
How will a reverse mortgage affect my estate?
The loan balance,
What is a cap rate, and why is it important?
The capitalization rate (cap rate) is a metric used to evaluate the profitability of an investment property. It's calculated by dividing the net operating income by the property's current market value.
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