Guide to accessing a reverse mortgage

More and more people are interested in it and its popularity is increasing. We are talking about the reverse mortgage, a financial product aimed at the elderly and disabled who are homeowners. In today’s article we analyze how to access a reverse mortgage . Find the best mortgage without mistakes Going from bank to bank is a thing of the past. GET INFORMED FOR FREE What is a reverse mortgage? The reverse mortgage is a financial product aimed at a specific client. It is aimed at people over 65 years of age or with severe dependency , who own a habitual residence and who are looking for additional income in retirement. It is a loan with a mortgage guarantee, which allows the client to obtain financing from the real estate assets without the obligation to abandon the property.

Requirements to request a reverse mortgage

There are a series of conditions to access a reverse mortgage . The requirements to access a reverse mortgage in Spain are the following: Own a home with no outstanding charges. Whether it is a flat, house, duplex, habitual residence or second residence. If it is the South Africa WhatsApp Number Data habitual residence, there will be no need to pay the Tax on Documented Legal Acts (IAJD). Being an elderly or disabled person. Over 65 years old. Over 65 years old with a disability equal to or greater than 33%. Severe dependency or great dependency. Home value. Getting a reverse mortgage will be easier if you have a property located in an urban center or if it has a value greater than 150,000 euros. Have heirs. Granting a reverse mortgage without heirs is a more complicated procedure. If you do not have heirs, the bank will keep the home. Residing in Spain.

Advantages and disadvantages of the reverse mortgage

If you are thinking about applying for a reverse mortgage because your profile fits the characteristics mentioned above, then it is time to review what are the good and not so good parts of this very characteristic loan. Advantages of the loan The reverse mortgage has the following advantages : You get more liquidity , which adds to your pension. You are still the owner of your home . It can be cancele Germany WhatsApp Number List in advance . You will only have to pay the bank the amount accumulated until the last day of the loan. There are no repayment fees, so your heirs will be the ones to repay the loan once you die. Disadvantages of the loan What is bad about the reverse mortgage ? Let’s look at some of its drawbacks: Interest rates may be higher than other more common loans. Normally they force you to take out rental insurance . The amount of money is not very high because the banks do not offer the full value of the property .