Amortization mortgage reverse schedule
Worked for the entire life and at dawn is nothing left in the pocket Helped friends and relatives abundantly, gave good education and financial support to children for settling in their life. Was also not behind anybody in doing charity. It was not possible or never cared to keep aside something for the rainy days. Forgot to think that a day will come when the employer will show the gate with the gratuity cheque or a day will come when one cannot exert as earlier.
The retired life will not be as easy as earlier, but bit miserable with old age diseases, doctor, hospital, etc. Self-respect does not allow to approach or accept aids from the children, forget about friends or relatives.
Here comes reverse mortgage for help.
Though you own a residential accommodation set up for your old age, it cannot be liquidated immediately as you do not have any other option and also fear that you would be homeless. Financial Institutions or Housing and Urban Development Corporations have come forward with the offer of reverse mortgage for the same. The life expectancy of the occupants is calculated based on the physical fitness, age; and the value of the property that would accrue at the fag end is fixed and an EMI is arrived at based on these calculations taking care of the interest portion, and is given to the borrower on monthly installments or in lump sum for unexpected expenditures, such as hospitalization, etc.
In this way, a retired person can sell in advance all or part of the equity of his home and still retain the ownership and live there. With the permission of the lender, he can even sell, gift or mortgage the property, by paying back the EMI along with accrued interest thereon. On his death, the lender will sell the property and the surplus, if any, is handed over to his legal heirs. If the occupier lives for more period than expected or the property does not fetch the expected sale value due to recession in market, etc., the same would be covered under insurance and the legal heirs do not have to bear the same.
It will be the duty of the occupier to maintain the property well and payment of the taxes, etc. to the civic and other authorities in time.
The reverse mortgage does not come with any strings, such as minimum or maximum income, earnings verification, re-payment histories of other loans and one has the full liberty to spend the money received for any purpose he desires.
Unexpected emergencies and unforeseen situations can dishearten even strong hearted persons. Also to live without any regular income at the old age would be very difficult. A good portion of our income is invested in residential accommodation, and the reverse mortgage of the same will help us to overcome these situations, without loosing the ownership or right of living there.
So, if there is no other source of income after retirement, it is better to go for reverse mortgage and secure ones retired life.
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