How does a reverse mortgage work?

Reverse mortgages are aimed at people over 65 years of age. It consists of a loan or credit with a mortgage guarantee, without losing the property, it allows you to obtain liquidity from your real estate assets, to have the accumulated saving of your home to use it as collateral while you make use of it. Without having to make a monthly payment but when you decide or n case of a death. Upon death, the heirs decide if they want to sell the property and pay the corresponding percentage, recover it or deliver it as payment for the rent received by their relative.

We know that examples can be an incredible way to explain this type of service, so let’s assume that Edgar is 70 years old and lives in a house with a value of $400 million, he decides that the reverse mortgage is what he favors and contracts this service. The value of the monthly amount will depend on several factors such as the property and the age of the subscriber. After a calculation made by his advisor, he will understand that he can get approximately $1400 thousand per month, so it is the best way to be able to support himself during his old age without having to lose his house, it is the best way to ensure a happy life for people over 65 years olds and to be able to fulfill their dreams in the place that made them happy for a long time.

The reverse mortgage offers great potential for generating economic and social benefits. The repayment of the loan is generated upon death, including, of course, the interest earned by the insurer. Or in case of having any heirs, they are granted one year to be able to pay off the debt. There is also the possibility of a temporary mortgage that is made during a negotiated period, it is the perfect option for that type of people who prefer to enjoy their old age quietly without worrying about not producing enough money to support themselves every month.

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