Reverse Mortgage
A reverse mortgage is a loan with mortgage guarantee granted by a financial institution or insurer, by which persons 65 years of owners of a property, may make periodic provisions or a single provision, up to a maximum amount determined by a percentage of the value of current appraisal of the floor, without debt may be required until the death of the owner or of the last beneficiary. The reverse mortgage can be contracted under the following modalities: lifetime reverse mortgage: monthly charged by the contractor shall for life, that is, until his death, that simultaneously to the Constitution of the credit is insurance income annuities deferred hiring, which is financed with own credit, which ensures that the completion of the credit will continue perceiving the same amount through such insurance. In this mode, you can apply for an advance payment of capital at the start of the operation, whose amount may amount to between 20% 30% according to the conditions applied by each entity. Temporary reverse mortgage: monthly provisions will be charged until the end of the credit (this term is established by each entity and depend on the age of the contractor). Once exhausted this time the beneficiary of the reverse mortgage will no longer receive monthly pensions agreed, although it should be remembered that the debt accumulated only can be required on the death of the contractor, although it occurs subsequent to the completion of the credit. In this mode, you can apply for an advance payment of capital at the start of the operation, the amount of which may amount to between 20% 30% according to the conditions applied by each entity. Single entry / single payment: also it is possible to perceive the whole amount of the credit in a single initial provision. This modality is not being currently marketed by any financial institution / insurance company in Spain. According to a study conducted by group retreat, independent advisors of reverse mortgage over 15 years of experience, more than 60 percent of elderly people of Madrid have a high or very high level of acceptance of these products.
