The housing and urban development department has always come up with housing schemes specifically deigned to take care of the elders in the country.
A few old schemes that have been successful include the VA loans for war veterans.
The reverse mortgage is another such plan that has been designed to make the elder citizens' life more secure and non-dependent on others.
A reverse mortgage works in exactly the reverse way that a normal mortgage would work.
If any elder citizen above the age of sixty two owns a house, he can avail a reverse mortgage plan to finance a substantial part of his remaining life.
The bank or lending institution shall pay the owner of the house a certain sum, based on the value of the house as well as existing reverse mortgage interest rates as specified by the housing development authority.
This is a wonderful way of securing the life thereby ensuring that they no longer suffer any sort of financial penury.
Reverse mortgage plans are available for houses which have finished paying of the normal mortgage payments.
In a new scheme, the bankers have started using reverse mortgage options from the beginning of the normal mortgage itself.
In such plans, you can, in your working age itself, purchase a home with a reverse mortgage clause inserted into the agreement, which comes into effect as soon as you turn sixty two.
Here, the scheme is actually quite simple.
As you finalize a mortgage purchase and intend to pay the bank for the next ten to fifteen years, it means that under normal conditions, by age sixty two, you certainly would have finished paying of the mortgage and the house would legally be yours.
This makes you eligible for the reverse mortgage.
Here, after you have turned 62, the bank starts paying you a sum every month for a specific number of years, as agreed in the contract.
This time period and the monthly sum shall be based on a number of factors.
These include the price of the house as well as the interest rates agreed upon.
This works more or less like a pension scheme, with the only difference being that the payments are to be paid for a fixed number of years only.
In case, the owner dies before the payment term is over, the property is put up for sale and the bank, after reducing the amount that has been paid to the owner during his or her life, returns the remaining value to the legal heir.
In case the person outlives his term, the bank cannot take the property till the person occupies the home.
Later, on his expiry, the property shall be put up for sale and the proceeds divided like in the earlier mentioned case.
One important criterion for eligibility is the fact that the reverse mortgagee should have a basic financial back up, by which he shall be in a position to pay his taxes.
A few old schemes that have been successful include the VA loans for war veterans.
The reverse mortgage is another such plan that has been designed to make the elder citizens' life more secure and non-dependent on others.
A reverse mortgage works in exactly the reverse way that a normal mortgage would work.
If any elder citizen above the age of sixty two owns a house, he can avail a reverse mortgage plan to finance a substantial part of his remaining life.
The bank or lending institution shall pay the owner of the house a certain sum, based on the value of the house as well as existing reverse mortgage interest rates as specified by the housing development authority.
This is a wonderful way of securing the life thereby ensuring that they no longer suffer any sort of financial penury.
Reverse mortgage plans are available for houses which have finished paying of the normal mortgage payments.
In a new scheme, the bankers have started using reverse mortgage options from the beginning of the normal mortgage itself.
In such plans, you can, in your working age itself, purchase a home with a reverse mortgage clause inserted into the agreement, which comes into effect as soon as you turn sixty two.
Here, the scheme is actually quite simple.
As you finalize a mortgage purchase and intend to pay the bank for the next ten to fifteen years, it means that under normal conditions, by age sixty two, you certainly would have finished paying of the mortgage and the house would legally be yours.
This makes you eligible for the reverse mortgage.
Here, after you have turned 62, the bank starts paying you a sum every month for a specific number of years, as agreed in the contract.
This time period and the monthly sum shall be based on a number of factors.
These include the price of the house as well as the interest rates agreed upon.
This works more or less like a pension scheme, with the only difference being that the payments are to be paid for a fixed number of years only.
In case, the owner dies before the payment term is over, the property is put up for sale and the bank, after reducing the amount that has been paid to the owner during his or her life, returns the remaining value to the legal heir.
In case the person outlives his term, the bank cannot take the property till the person occupies the home.
Later, on his expiry, the property shall be put up for sale and the proceeds divided like in the earlier mentioned case.
One important criterion for eligibility is the fact that the reverse mortgagee should have a basic financial back up, by which he shall be in a position to pay his taxes.
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