The advantages of reverse mortgages are:
It offers you security by obtaining an annuity as a supplement to the pension (provided you have contracted deferred income insurance). This mortgage loan allows you a greater well being able to pay your personal expenses, trips with the immersed, ...
It preserves the possession and ownership of your dwelling, being able to continue living in it, rent it and even transmit it by inheritance.
It has a better tax treatment whenever the property is the habitual residence, the monthly installments that the beneficiary receives do not tax.
At any time you can undo the transaction, returning to the financial institution the money borrowed until the day of cancellation. Most entities do not charge for canceling the mortgage in advance.
The public deeds that document the operations of incorporation, subrogation, modification novation and cancellation of the reverse mortgages are exempt from the gradual quota of notarial documents of the Transfer Tax Patrimonial and Documented Legal Acts.
And the disadvantages and disadvantages:
The client has to pay the appraisal costs of the house.
The contracting of this product requires a mortgage formalization expenses that are included as an initial provision charged to the loan: interest, opening commission, notary writing expenses, registration and management fees, miscellaneous taxes and the subscription of the deferred income insurance.
There are limitations in accessing this type of product: some entities do not accept farms below a considerable value or in locations where it is difficult or uneconomical to carry out the relevant procedures (for example, because there are no offices, problems to sell to third parties, etc.).
The share of reverse mortgages is not updated with the CPI, although formulas can be agreed to raise incomes that increase each year.
The risk that can psychologically cause older people to get rid of one of their main assets for which they have saved a lifetime, such as housing, despite maintaining ownership and possession of the property and transmit it to his heirs.
(0) Reply Rate this answer130
Anonymous on 14 June 2012
The Reverse Mortgage is a mortgage loan for people over 65 who own a home, through which the Financial Entities pay these people a monthly income, with the particularity that the Major Person does not have to pay back the amounts received or interest accrued, but the debt is postponed to the death of the contractor or the last of the beneficiaries, so it will be their heirs who must cancel the credit. All this while maintaining full ownership of the home. For the calculation of the monthly rent which in each case corresponds to the owners of a house, the age and sex of the contractor, and the value of the dwelling (determined by an official appraisal), as well as the technical and financial conditions applied by each Entity. The Reverse Mortgages can be contracted under the following modalities: Reverse Mortgage Lifetime: The Senior Person receives a monthly rent for his entire life. Temporary Reverse Mortgage: The Senior Person receives a monthly income for a certain number of years (established according to his age at the time of hiring). Capital Advances: In either of the two above modalities, the client may request to receive a Capital Advance as a first-time disposition. It is important for Seniors to hire him through Independent Advisors. In this sense GRUPO RETIRO does a free study on Reverse Mortgage, without any kind of commitment. For more information: GRUPO RETIRO 915774240
