Richmond BC mortgage broker are not all the same. As a BC mortgage brokers and a writer, the author has a deep insight into the BC mortgage market. Check out his BC mortgage rates at his blog.
A reverse mortgage is a home equity loan without a payment. You do not repay the loan as long as the home remains your principal residence. Your income and credit rating is not considered when qualifying for the loan. The writer is a reverse mortgage expert.
“A lot of the people in the reverse mortgage age lived through the Depression era,” said Rachel Brichan who focuses on jumbo reverse mortgages for the Irvine, California-based Financial Freedom. “To them, you were expected to have the house paid off by the time you retired. Somehow you felt like a failure if you didn’t. It’s hard for them to break through that mentality, but it’s becoming more of a financial question now because of what their homes are worth.”
On the other side of the housing ledger are the “absolute need” households where the cost of obtaining a reverse mortgage cannot be measured simply by the interest rate and fees charged on a line of credit. That’s what Wells Fargo’s Jeff Taylor was referring to in the Introduction of this book when he responds, “>”Compared to what?” when faced with defending the seemingly high cost of reverse mortgages. If you sell your home and pay the closing costs, could you find another home with the same amenities and friendly neighborhood as your present home? What price do you assign to relieving the anxiety of a maxed-out credit card? How do you quantify the ability to purchase needed medications?
Obviously, we cannot predict when we are going to die. However, try to take a shot at guessing how long you will stay in your home. Unless you are in a desperate situation and really need cash, it probably will not make sense to obtain a reverse mortgage if you are going to stay fewer than four years. That’s because of the fees involved. If you plan to stay longer, and a growing number of people plan to do so, the reverse mortgage could be a viable option.