What is reverse mortgage?

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what is Reverse mortgage?

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Mortgage is where the home buyer will pay principal + interest to the bank who has paid the sale value for a property.

Reverse mortage is where the owner of a house, usually a senior citizen and does not have any income, will receive money regularly from the bank. The money received depends on the value of the property. The property belongs to the senior citizen, possession is with senior citizen and when the person is deceased, the bank will recover the payment made to the senior ctizen by selling the property.

 

It is a  type of mortgage in which a homeowner can borrow money against the value of his or her house.

No repayment of the mortgage both principal & interest is required until the borrower dies or the house is sold.

A reverse mortgage provides income that people can tap into for their retirement.

The property belongs to the senior citizen, possession is with senior citizen till his death or sale

The advantage of a reverse mortgage is that the borrower's credit is not relevant, and is often unchecked, because the borrower does not need to make any payments.

Hi

as the name shows it is just reverse of Mortgage. In this scheme instead of paying installment to bank you will get a regular payment from bank on mortgage of Residential House Property. For more reading pls click on following link https://gchoradia.blogspot.in/2014/02/reverse-mortgage-as-per-section-47xvi.html


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