Hi, welcome to policy planner today we are going to talk about reverse mortgage loans. Will briefly cover what is reverse mortgage loan things to know about reverse mortgage loans and buying tips while applying for one reverse mortgage. A reverse mortgage is a loan taken against your home, which does not need to be paid back for as long. As we live there or until the house is sold the loan is generally sanctioned against 60% of the value of the property. This is available only to senior citizens above 60 years of age however the title of the residential property needs to be in your own name and you need to reside on the property.
The borrowed amount is repaid with interest by the air after the borrower died. The concept of reverse mortgage of houses originated in the US. Where senior citizens who were left unsaid for by their children could use their home to avail money in their old age in these loans the borrower’s credit is irrelevant, because it is not the borrower but is heirs who have to repay the loan the house is also available as security or collateral thanks to no features of reverse mortgage ban sanction alone up to 60% of the value of the residential property. The maximum tenor the reverse mortgage zone sangria wait for is 15 years. Which in some cases can go up to 20 years the borrower can opt for a monthly quarterly annual or lump sum payment at any point as pearls discretion the revaluation of the property has to be undertaken by the bank or housing finance company. Once every 5 years, the amount received under the reverse mortgage scheme from the bank is considered as a loan or reliability and no tax is paid on these amounts. The title of the home is in the name of the senior citizen and he continues to pay the maintenance tax and repair charges.
What are the eligibility criteria for availing a reverse mortgage loan in you need to be a citizen above 60 years of age married couples? Will be eligible as joined borrowers for joint assistance in such cases the age criteria for the couple. Would be at the discretion of the reverse mortgage lender subject to at least one of them having being above 60 years of age and the other pillar 55 years. The residential property should be free from any encumbrances the property. Should have a residual life of the thief 20 years. The borrower should decide on the property using it as his primary residence the home needs to be in the name of the senior citizen and must not be let out or given for rent even on a partial basis the maximum loan amount along with the interest is generally restricted to a crore of speech. What are the advantages of reverse mortgage you can avail of this known for as long as you do not sell the house permanently move out of the house or as long as you’re alive this amount could be used to repair or renovate your house higher the age of the senior citizen more are the amounts required by him to maintain himself and consequently higher is the amount available as alone under the reverse mortgage. Scheme the owner and his spouse continue to stay in this house even though he might outlive the tenor of the loan the property appreciates with the passage of time and as long as the senior citizen maintains.
It well and concentrates on its general upkeep this is viewed as a major benefit and serves as an incentive for the legal heirs to reclaim the property by paying of the dues since the Deagle heirs have an emotional attachment with the property. How are the loan amounts repaid when both the borrower’s died the banks get in touch with the legal heirs of the property and gives them the option to settle the pending yule amount along with the interest component and take possession of the house. If the legal heirs are not able to do, so the back options the property and uses the proceeds to color back the loan amount along with the interest component and the rest of the amount is given to the beacon edge.
What happens after the death of one of both of the spouses if one of the spouses dies the other can still continue to live in the house does a person’s age affect the loan amount sanctioned higher quantum of loans in the range of 60% of the value of the property can be obtained if one is around 70 foot can I reverse mortgage loan we availed against property being used for commercial purpose no the zone cannot be availed against a commercial property what is the maximum amount a house owner can get under a reverse mortgage loan the maximum monthly payments made by the bank to the borrower cannot exceed 50,000 rupees per month the namsom cannot be more than 50% of the total eligibility amount with a seating limit of 15 lakh rupees.What is the rate of interest charged on a reverse mortgage loan? The rate of interest charge is around 12 to 15 percent per annum a processing fee is charged while sanctioning the reverse mortgage loan amount. Which might be 1% of the loan amount function is the payment received by a borrower under a reverse mortgage zone subjected to income tax all payments under reverse mortgage loan charlie exempt some tax under Section 10 43 of the Income Tax Act 1961 buying tips a very loan from Bath. Which give a competitive rate of interest. If you are over 70 years of age you get a higher quantum of loan against the property. The bank might make an assessment of the property based on circle rate or the market rate strength of the structure and the general maintenance of the property maintain the property well to get a higher amount of loans action.
These loans are typically fixed but floating rate loans are available which fluctuate in lieu of the market conditions. The RBI has recently abolished prepayment penalty on floating rate loans and if you want to prepay availing a floating rate loan is a good option. There are some mortgage plan reverse, mortgage, adviser, lender, loan, senior, home, equity, insurance bazar, compare online by and save tax, cover fox.
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for reading”Reverse Mortgage Concepts”.
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