![]() ![]() With a Reverse Mortgage you continue to own your home it is yours. Whenever you use cash, your net worth is affected. Development of the Line of Credit over time Equity In most Reverse Mortgages the Line of Credit, if left untouched, grows over time. It helps you to manage unforeseen financial difficulties. Keeping part of the Reverse Mortgage as a Line of Credit is a wise decision when setting up a Reverse Mortgage. Liquidity is provided by the Line of Credit in a Reverse Mortgage. Liquidity is the amount of cash that you may access, if needed. Income received from the Reverse Mortgage Additionally, as long as you have a Line of Credit, you can always draw cash from the Line of Credit. If you have set up the Reverse Mortgage to provide you a monthly income, you will receive this amount of income every month. Over time you will enjoy the benefits of the Reverse Mortgage. Thus your equity is the light green (Line of Credit) plus the blue (Funds for Monthly Income) plus the grey reserves. You own the whole pie, but you owe the red, orange and dark green segments. ![]() Your Equity Your equity is the balance of what you own and what you owe. These are symbolized by the grey segment. There remain reserves that are not used for the Reverse Mortgage. ![]() Reserves The Reverse Mortgage does not cover the whole value of the home. ![]() Funds for Monthly Income If you would like to receive a monthly income from your Reverse Mortgage, then a part of the Reserve Mortgage will be reserved for monthly income. This is symbolized by the light green segment. Line of Credit The remainder of the Reverse Mortgage will remain at your disposal as a Line of Credit. Lump Sum Upfront The lump sum that you receive upfront is symbolized by the dark green segment. The closing costs are symbolized by the red and orange segments: Financing Fees and Insurance Fees. Costs for the Loan The costs for a Reverse Mortgage are financed through the Reverse Mortgage itself. Remember, as long as you or your spouse live in your home, you are the owner of the home. Mortgage Refinance Calculator - this will help provide information for you to decide if refinancing might make sense for you.įor specific information on your situation, please contact one of our Vancouver Island or Lower Mainland Mortgage Advisors.The following pie depicts the Reverse Mortgage:Īt closing of the Reverse Mortgage Value of the Home The whole pie symbolizes the value of the home. Also see our information on Qualifying for a Mortgage. This calculator steps you through the process of finding out how much you can borrow. Mortgage Qualifier - The first step in buying a house is determining your budget. Making Extra Payments - See how much interest you can save by just adding a little bit to your mortgage payment or by paying lump sums when you can. By comparing these important variables side by side, this calculator can help you pick the mortgage details that work best for you. Mortgage Comparison - Evaluate different mortgage variations on monthly payments, fees and other costs associated with getting a new mortgage. You can even determine the impact of any principal prepayments on your mortgage. Quickly see how much interest you will pay, and your principal balances. Mortgage Calculator -Calculates an amortization schedule for your current mortgage. Below is a brief description of what each one can help you with: Click the list at the left to explore our very own calculators designed by our own BC Select Mortgage team to help you evaluate your mortgage options. ![]()
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