How is a reverse mortgage calculated? by Paweł | March 9, 20150 comments Reverse mortgage is an offer from banks in whic

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Reverse mortgage is an offer from banks in which the borrower gives up their apartment in exchange for which they are paid a monthly annuity for life. The amount of the annuity paid depends on the gender, age of the borrower and the value of the property. This is a relatively new banking product addressed to people over 60 years of age.

Banking procedures in the event of death
house-01jpgBut what happens in the event of the death of the borrower? Namely, the bank takes over the property and has the right to sell it at the current market price. This form of credit allows you to freely manage your money, which was precisely this property and not funds in a bank account . One of the conditions is a freehold apartment or a house. God be it is also the right to a cooperative apartment.



When signing a loan agreement, the borrower does not have to worry about not having creditworthiness or having to take a certificate of income, because no installments are paid. They also cannot be registered in the National Debt Register. It should also be mentioned that if the heirs repay the debt, they remain with full rights to the property. However, there el salvador whatsapp database be a situation where the borrower owes the financial institution more than the property is worth. The person taking out such a loan for the duration of the loan is obliged to pay taxes and other costs, because they are still the sole owner of the property, which obliges them to pay fees. Although this form of credit is new in Poland, it cannot be treated badly from the outset.

We recover frozen capital
credit division after divorceIt is worth considering the possibility of a reverse mortgage. This may be the only way to use your capital (which is really standing idle) in some way, earn money in some way and maybe finally free your heirs from the problem. Especially "who is entitled to what" or from the dilemma of who will take care of the house when we are gone, because many elderly people are looking for the most suitable solution for themselves.

Loan model and sale model
It is important to remember that on the market this loan operates as a loan model and it is necessary to check carefully whether by any chance we do not get into the so-called sale model, which is different, because at the time of signing the agreement the owner transfers the ownership right to the other party, which is in the agreement. Of course, whoever decides to use this form receives a monthly payment, does not have to bear the costs together with the tax for the house.

On the other hand, no heir can repay the loan and cannot apply for the return of ownership. It is also worth mentioning that the loan does not have to be in the same amount as the value of the apartment. So, it may be worth considering this option if it suits us, because not every new product or service has to be bad.