Reverse Mortgage scheme allows homeowners, typically Senior Citizen, who owns a house property to mortgage their property to schedule bank or housing finance company in return for a lumpsum amount or regular monthly/quietly/yearly income. Senior citizen can continue to live in the house and receive regular income without the botheration of repaying the loan. Here are some key points about reverse mortgages:
Eligibility:Reverse mortgages are usually available to homeowners who are at least 60 years old and have a self acquired or self occupied house property.
Loan Amount:The loan amount is determined based on the value of the property, the age of the borrower, and the prevailing interest rates. Typically, the older the borrower, the higher the loan amount they can receive.
Loan Repayment: Unlike a traditional mortgage, with a reverse mortgage, the borrower does not make monthly mortgage payments. Instead, the loan balance accumulates over time. The loan is typically repaid when the borrower sells the home, permanently moves out, or passes away. The repayment is made from the proceeds of the home sale, and any remaining equity goes to the borrower or their heirs. However, before resorting to sale of the house preference shall be given to the legal heirs to repay the loan with interest and get the mortgage property released.
Home Ownership and Responsibilities: With a reverse mortgage, the homeowner retains ownership of the property and continues to be responsible for property taxes, homeowners insurance, and maintenance of the home. Failure to meet these obligations may result in defaulting on the loan.
Visit https://www.unionbankofindia.co.in/english/personal-retail-reverse-mortage.aspx
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