CANADIAN MORTGAGE VIEWS

MORTGAGES FOR SENIORS When a person retires, he or she may see a dramatic change in their income - at a level a lot less than they were accustomed to when working. Perhaps they had saved money for retirement, but some incidence may have occured to use up these savings, perhaps an illness. How do people meet these finnacial challenges? Over the past few years, as home prices have escalated, substancial equity has been built up in their home. Do you tap into this equity to free up funds for use. What are the pros and cons? What types of mortgages are available?  Reverse mortgages, lines of credit and equity take-outs are available. However the amount of income and debt level may make one or more of these unavailable. Over the next few days, each one of the types will be discussed along with the pros and cons for each.  Are there other reasons that a senior may wish to pull equity out of their property? Perhaps they want to help with the down payment of a child who wishes

Is It Time To Refinance? When people take on a mortgage the majority opt for a 5 year one usually because they intend to stay in the residence and they know their payments for the next 5 years. However life sometimes throws a curveball at us and we have to make hard financial decisions. Perhaps an illness occurred or 1 person was laid off or a divorce occurs and suddenly you can't pay for anything in cash anymore and resort to using credit cards. As we well know credit cards companies love this because the amount of interest you are paying increases. Perhaps you took a 5 year mortgage out several years ago You now look at how you can lower your payments and because mortgage rates are at a historical low these days it makes sense to look at breaking your mortgage and taking on a new one at a lower rate.  Paying off credit cards at 20% + interest looks attractive when you can get a new mortgage under 4% these days. Before you do anything you need to know what it will cost to b