|
Reverse mortgages allow you to borrow cash against the value of your home. You usually don’t have to make regular repayments until you leave and move into care, sell your home or die. When the loan ends you, or your estate, must repay what's owing, usually out of the proceeds of the sale of your home.Each year the fees and interest you would ordinarily pay are added to the loan balance. Over time, you're charged interest on the interest (or compound interest) and that builds up the total amount you owe. You should be eligible for a reverse mortgage if you are 60 years or older and own your own home. You'll usually be able to borrow between 15% and 40% of the value of your home, depending on how old you are – the older you are the more you can borrow. In the case of couples who are both owners of the property, the amount you can borrow is based on the age of the youngest borrower. What are the benefits? - You can access cash as a lump sum, a regular stream of income or a combination of both – to suit your needs.
- You don't need a current income to qualify.
- You get to stay in your home and keep ownership.
- You usually don't have to make any regular repayments while you live in your home.
Here are some reverse mortgage hints you might find useful: - Spend some time reviewing your budget (or developing one if you don't already have it) and sharpening your money saving skills can bring big rewards later.
- Explore your options - with so many loans on the market, it makes sense to get a professional to help you select a loan that is right for you. With My Financing Manager there is no cost to you - just contact us.
|
