Notary Public Kelowna Reverse Mortgage
Source http://notary-public.kelowna-bc.ca/ – Hey, Seniors! Some great TV stars are pitching “Reverse Mortgages” to you. Are they a good deal? Let’s take a look and ignore all the hype!
Yes, not everyone will qualify. There are rules. You must be 62 or older. You must have equity in your home. (That means that your house must be worth more than your mortgage or mortgages.) You must continue to live in your home for -at least- 183 days a year.
You get cash! But never forget that while you are told that it is tax free, that is because it is a loan. You will have to pay it back!
You keep ownership of your home. Of course, it is a loan! But, remember, you need to keep up any and all payments due, including upkeep, taxes, insurance and any other debt.
If the value of the property increases, you get the increase.
If the value of the property drops, you don’t owe more.
You can pick a fixed rate of interest or a variable one. But you will owe interest.
There will be a lot of notary fees at loan closing. (Remember: it is a loan.)
Once the owner leaves (or dies), the loan is due. A survivor may be ejected from the house, if he/she was not on the deed and loan.
Heirs may find that they don’t have any value left. Worse, heirs may find that the home may be sold out from under them!
One still needs to keep up the payments to maintain the house.
While it may seem like a good way to free up cash from your home, the near-term and long-term cost may prove to be more than you want. Think carefully and read everything before you sign on the dotted line. There are too many stories about seniors losing their homes because of a technical point in those loan documents.
This is not for everyone. Read everything and get good advice before you sign anything.