Savvy home owners have figured out how to make their homes work for them.
Their homes provide financial muscle.
A typical mortgage comes with a fixed or variable interest rate and a predetermined schedule of payments. Some have features that permit an accelerated payment plan. Most also come with penalties and if you deviate from the terms, the penalty can be steep.
Reverse mortgages let you borrow against the equity in your home. It many cases it is possible to borrow 40% - 80% of your home’s equity. The equity in your home can be a source of tax free cash. Money can be used for almost any activity, for example: home renovations, investing, to pay for a holiday, to pay down other (higher interest rate) debt, or maybe to fund your child or grandchild’s education. The options are endless. But accessing your home’s equity can be daunting.
Not all mortgages are created equal .
Ø Some mortgages come with the freedom to access home equity without calling the bank.
Ø Some mortgages allow you to pay down debt as quickly as you like (without penalty).
Ø Some mortgages let you apply all your free cash against your debt, but still let you access cash as you need it (even to pay for groceries or fill up the car).
If your mortgage doesn’t work like this, maybe it is time to start asking why. If you want more freedom in the way you bank, want to pay less interest, and want access to home equity (without a hassle), you owe it to yourself to look around. Investorcare is not a mortgage broker, but we may be able to help you. Give us a call: 943-2273.