Feature and the main feature of a reverse mortgage from the rent that person for life remains the owner of the home, giving bail to the Bank through an authorized agency. It, in turn, prescribes the agreement all warranties, including the terms of withdrawal from the contract and the relationship with the heirs. By the way, all over the world have recognized that reverse mortgage has a strong educational effect - 70% of the heirs, after learning that their elderly relative is going to enter into the program, begin to care for an elderly man - because otherwise they would effectively prevent the inheritance.
In practice, the reverse mortgage scheme is relatively simple. The owner lays her in and begins to receive payments from the lender in a consistent manner. These payments form the principal amount. Accrued interest is also added to the principal debt. And to repay the loan and interest is not necessary. When a certain pre-specified event the lender to foreclose on collateral and the proceeds of the loan pays off.
Specified event, which allows the lender to foreclose on the collateral, are usually the death of the owner or his move in a social institution. The reverse mortgage is secured by owning pensioner flats available in two forms - either regular current payments, or a large one-time installment, can be mixed forms of payments. The most successful is if a person enters into a reverse mortgage at the age of 64 years and older - as a rule, at this time it is difficult to work, and the funds are needed. According to experts, if the pensioner chooses the way of monthly payments, they will be approximately half to two of his pension - depending on the person's age and the market value of his home. Interest rate - 9% per annum, but not of the total purchase price, interest accrues monthly on the outstanding balance. Registration of the contract takes the authorized agency, appraisal and property insurance conducted by independent experts. In addition, at present already identified a number of large banks, which transfer money to a personal account of pensioners. The Agency is also in the contract prescribes the control of the means - the money that gets old man, did go to his needs. If the monthly installments, the control - preliminary. Pensioner simply asked to indicate on the form, he will manage the payments. But if the payments go to the second option - a large sum, the control is next - the man asked to provide documentation on their activities repair, bought a car, pay for health care. Experts emphasize that a pensioner can not take back a mortgage in order to provide financial support to their children or relatives, since the only purpose of this financial product - the quality of life of the elderly. In the reverse mortgage, the agreement lays out clear guarantees - one lives in the apartment and its owner to death. If you are elderly couple - the reverse mortgage borrowers, they are together. Terminate the contract at any time, we just have to repay.
In practice, the reverse mortgage scheme is relatively simple. The owner lays her in and begins to receive payments from the lender in a consistent manner. These payments form the principal amount. Accrued interest is also added to the principal debt. And to repay the loan and interest is not necessary. When a certain pre-specified event the lender to foreclose on collateral and the proceeds of the loan pays off.
Specified event, which allows the lender to foreclose on the collateral, are usually the death of the owner or his move in a social institution. The reverse mortgage is secured by owning pensioner flats available in two forms - either regular current payments, or a large one-time installment, can be mixed forms of payments. The most successful is if a person enters into a reverse mortgage at the age of 64 years and older - as a rule, at this time it is difficult to work, and the funds are needed. According to experts, if the pensioner chooses the way of monthly payments, they will be approximately half to two of his pension - depending on the person's age and the market value of his home. Interest rate - 9% per annum, but not of the total purchase price, interest accrues monthly on the outstanding balance. Registration of the contract takes the authorized agency, appraisal and property insurance conducted by independent experts. In addition, at present already identified a number of large banks, which transfer money to a personal account of pensioners. The Agency is also in the contract prescribes the control of the means - the money that gets old man, did go to his needs. If the monthly installments, the control - preliminary. Pensioner simply asked to indicate on the form, he will manage the payments. But if the payments go to the second option - a large sum, the control is next - the man asked to provide documentation on their activities repair, bought a car, pay for health care. Experts emphasize that a pensioner can not take back a mortgage in order to provide financial support to their children or relatives, since the only purpose of this financial product - the quality of life of the elderly. In the reverse mortgage, the agreement lays out clear guarantees - one lives in the apartment and its owner to death. If you are elderly couple - the reverse mortgage borrowers, they are together. Terminate the contract at any time, we just have to repay.