Let's chat: 866-435-3748
|

It’s Here!

A perfect vehicle has arrived for those who don’t quite fit the criteria of a Reverse Mortgage but would still like to use some of their home’s equity, to help their children or themselves.

 Live the life you’ve worked for.

Statistics show that the vast majority of seniors prefer to remain in their family homes. Often, the difficulty is that they are house rich and cash poor. Our new lender provides a way to do this.

 An Equity-Based, Value Recapture First Mortgage

That’s the easiest way to describe our new product. There is no age restriction or limit. There are no monthly payments required. The interest rates are reasonable and accrue annually against the future value of the house. There is a maximum of 40% of the present value of the home available to anyone of any age with a good credit rating, without the necessity of proving income.

 The downside is that the Lender is geographically sensitive and the mortgages are available in urban centres only.

Interest rate calculations

The interest used is based on the growth of value of the property over a five-year term, established by an appraisal at the beginning and an appraisal at the end of each renewable five-year term, with a minimum of 3.5% and a maximum of 7.5%.

 Example

House present Value                  $600,000

Thirty percent Mortgage           $235,000

Remaining Equity                        $365,000

 

After 5 years, with growth at 5.5% per year, which is also the average interest rate

House value                                $785,000

Mortgage value                           $307,000

Equity remaining                         $478,000   

 

Interesting fact

Interest rates are at an all-time low. As these rates increase over time, the housing market should soften. This means that annual property growth will decline as well. Since these new mortgages are based on value increases, the interest rate over five years will also decline. On the other hand, those standard mortgages, with a variable interest rate, will see their costs increase.

 Totally confused?

Ask a professional.  Call me at 866-435-3748, or e-mail at info@koramgt.com

I got a big bag of mixed wild mushrooms at the market. 
Remembering that they will shrink, cut them into large bite-size pieces. Do the same for some shallots quartered. Add a liberal amount of butter to a frying pan with sliced garlic and sauté the mushrooms and the shallots gently, until almost dome. Add herbs of your should and season with salt and pepper. Add a generous splash of dry sherry and continue to sauté until the sherry disappears. Serve hot with a squeeze of lemon juice,