During the senior years, the majority of an individual’s net worth can be found in the home. For most homeowners, years have been spent paying a monthly mortgage payment which leads to quality equity in the home. After the age of 55, the equity can be used for retirement or simply to make changes around the home such as remodeling or much-needed repairs. If you are over the age of 55 and looking for extra income, a reverse mortgage might be the answer.
What is a Reverse Mortgage?
The option of reverse mortgage has been available for some time but many homeowners have never heard of the term or misunderstand what it means. A reverse mortgage is a new mortgage taken out on your home. You must be 55 years of age or older to apply and the amount of loan you are provided will be based on your age, the value of the home as well as the location.
Your property will be appraised and a value provided. You can be pre-approved for a maximum amount but only take out as much as you like initially. You pay interest on the amount that you are loaned and not the amount you have been approved for. The difference between a reverse mortgage and a traditional mortgage is that you do not make a monthly payment while you are living in the home.
The house stays in your name and you are the owner. You can choose to sell your home at a later date and use the funds to pay back the loan. The money you are loaned can be used for your retirement, making repairs or whatever you wish. The money is then paid back once the home sells, be it by you or your relatives. With a reverse mortgage in Guelph, your home is protected and you get to cash in on your investment as you see fit.
The estate is well-protected during this process as the lender will provide a guarantee that you or the heirs to your estate will never owe more than the value of the home.
Consider Your Options
Do you need extra money for living expenses? Do you need to remodel your home to suit your health needs? Consider how you could use the funds of a reverse mortgage. Consult with a lender to find out how the process works and begin pre-approval. Once the process begins, you will quickly see how easy it is to use your home as a means for additional income.
A lender can help you determine the value of your home via the appraisal process and get the paperwork started so you can quickly have access to the cash you need. At Mortgage Guys, we offer reverse mortgage options so you can access the cash you need and use it as you see fit. Our lenders are ready to explain the process of reverse mortgage and get you the best rates and plan for your mortgage needs. Contact our office today to find out more about reverse mortgage options or to start the application process.