Canada: Thinking about a reverse mortgage?

Canada: Thinking about a reverse mortgage?,

Here are some questions you need to ask first

As explained last week, a reverse mortgage is a way for cash-poor seniors age 60 and over to turn the equity in their house into spending money. The equity value is the current market value less any mortgage debt still owing.

Great, you say. Where do I sign?

Hold your horses. If you don’t ask the right questions, you can get into something painfully different from what you were expecting.

Remember, this is a loan that will eventually have to be paid back, with interest, by somebody - you, if you move or sell, or your heirs when you die. That’s fine if your ambition is to die on the day you spend your last dollar, but not if you would like to leave something to the next generation or two.

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Full post here Reverse Mortgage Loan Blog

Written by News & Feeds on October 7th, 2007 with comments disabled.
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