Quick Tips For Homeowner Mortgage Options

Is An Equity Release Mortgage Right For You?.

16:58 11 March 2013

As the economy continues to struggle, everyone is looking for ways to make ends meet. One of the biggest fears that people face is the fear of losing their home. In response to these fears many lenders have created programs designed to present a way to deal with that fear. The equity release mortgage is one of those programs.

The equity release mortgage allows the homeowner to receive the equity that they have in their home as tax-free cash. They can receive the equity as a lump sum cash payment, or the money can be placed into an account that they can withdraw from based on need. They can also choose to do a combination of the two.

 

They are allowed to stay in their home for the rest of their lives if they so choose, without paying monthly mortgage notes. You do not have to transfer ownership of your property and you keep your deed. 

 

Now before you go running to get an equity release mortgage, there are a few things you need to consider. Here are some things you need to know:

• If you decide to move to another property considered “suitable” there is no penalty. But if you decide to move to a retirement home there are penalties that must be consi

 

• An equity release mortgage does affect what you can leave as an inheritance for your family. As the mortgage is secured and backed by the sale value of your home, when you die that’s exactly what will happen. Your home will be sold to repay the loan. So if you want to leave an inheritance from your estate you need to work that out up front with your equity release mortgage provider to know what your options are.

 

• Factors like the value of your home and your age determines how much of your homes equity can be released.

 

Talk with a mortgage professional to get all the details if you think an equity release mortgage is right for you.