What is a reverse mortgage?

reverse mortgage

Do you want to know what a Reverse Mortgage is? In this article you will learn and know what a reverse mortgage is and what its functions are. The financing system known as a reverse mortgage is designed especially for older adults . At Maicomortgageloans.com/ we tell you how it works.

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How does the reverse mortgage work?

reverse mortgage

As explained by the Minister of Housing, Jonathan Malagón, during an interview with CityTv, the reverse mortgage "is a facility for families who manage to reach old age with a home, but without a pension, can use their home as an insurance mechanism”.

That is, if you have a house but not a pension , this system allows you to mortgage it to receive monthly money.

“That does not mean that they are going to lose their home while they are alive, they can enjoy their home until the last day of their lives but receiving a pension. At the time these people die, that property reverts to the investment funds that buy it, "said the Minister.

What are the requirements and what options are there?

According to United States Banks, to access this product you must be over 65 years old and the monthly value you receive depends on the value of the home and the age of the applicant, because the older the age, the higher the income.

For example, in many countries, where this financing system is already regulated, there are several options: lifetime reverse mortgage, temporary or single provision.

 Life: you receive a monthly income until death. In this case, the rent is less than the temporary reverse mortgage, especially depending on the age of the person requesting it.

 Temporary: in this case money is received during a negotiated period, the maximum amount received is the value of the home . This type is recommended the older the person is, as it is more lucrative.

 Single disposition: in this case, the total value of the home's value is received only once.

I hope that this information has been of great help and satisfaction to you, so continue reading more articles published on this website so that you continue to learn much more about the different loan that you can see.

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