Estás leyendo la prensa de bolsa del futuro | ¿Aún compras prensa escrita para leer sobre Economía?
Find:

Reverse Mortgage Companies

Published by sam - 29/09/07 - 04:09:13 am

If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!

Many elderly people own their homes free and clear but have low cash income, even though their home, having appreciated in value in recent years, represents a substantial but non liquid asset.  Reverse mortgages, offered by a number of firms that specialize in them, can provide such homeowners with an increase in their current cash income.

The reverse mortgage is essentially a home equity loan in reverse—that is, the home serves as collateral for monthly payments that are made to the homeowner and the loan is repaid from the estate of the borrower after his or her death.  Under a typical arrangement, a couple at least 62 years old may borrow up to $700 a month for as long as they live.  Moreover, the monthly payment, because it constitutes a loan rather than income, is tax-free.  Upon death, the loan is repaid through the sale of the home, but usually no other asset of the estate can be used for repayment.

Although a reverse mortgage can be a very useful way of enhancing retirement income, it obviously reduces the value of the estate you may wish to pass on to heirs.  Moreover, it must be negotiated very carefully.  It must provide, for example, for payments to continue for the life of the surviving spouse.  Some reverse mortgages provide payments for a set number of years that exceeds the borrowers’ life expectancies as determined by actuarial statistics.  Borrowers who outlive the term may find themselves dispossessed of their home.

Artículos relacionados

No Comments »

RSS feed for comments. TrackBack URI

Leave a Comment

XHTML: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <strike> <strong>

Welcome to Personal Money Management Expert,the blog where you can find advices to save money and to earn more with each dollar. If you want, it's possible to suscribe by mail and receive all news by e-mail.

E-mail:

Este blog funciona gracias a WordPress | Condiciones de uso de los contenidos | Responsabilidad
Entradas y Comentarios feeds. XHTML y CSS válidos.