Category – business and money
Reading time – 5 minutes
Many of us are not financial experts. We don’t know what to do with our excess money.
We fail to save for the future.
We don’t know, what will we need when we grow older. We put too much faith in our kids.
We presume that they will take care; like we did. But world doesn’t work that way. It is always better to be self reliant especially in old years.
Things change with time. People also change.
Sometimes it is very tough to bear our senescence. We may still have to work to put food on the kitchen table.
If you have a house, which you own; then there is a way to earn regular income from it.
Thus can help you to enjoy your old age, without worrying about bills.
This remedy is called reverse mortgage loan.
To get it you must be above 60 years of age.
You ought to be living in the house with your spouse. No body touches your house; till either of you is alive.
You get regular income from bank for an amount which is equal to 60% of the current value of your property.
Minimum tenure is 10 years and maximum is 20 years.
When both husband and wife who have taken reverse mortgage loan die, then two things can occur.
Bank asks heirs to pay the loan and reclaim the property.
Bank sells it to recover the loan amount and rest is given to your legal heirs.
If you want to reclaim your house while alive, you can repay loan to get it back.
It requires you to live in that house without prolonged absence.
Sounds good. Yes it is a good option for senior citizens who have problems with liquidity.
Inspiration – many financial blogs and videos.