Reverse Mortgages , also known as "equity release”, are aimed at retired people who own their property but have cash-flow issues.
Generally a reverse mortgage will allow seniors to borrow
against the equity in their property for any purpose, with no loan repayments
required, unless the borrower sells the property or passes away, which will
require the loan to be paid in full.
All interest, fees and charges are capitalized (added to the
loan).
The loan can be taken as a lump sum, as regular income, as a
line of credit or a combination of all of these.
Loans can start at $10,000 but can range much higher,
depending on the borrower’s age and equity in the property.
Typically, loans start at 25% of the value of the property
but may increase depending on age.
Loan interest is calculated and generally charged to the
loan account on a monthly basis and is capitalised to the loan amount.
To find out more about Reverse Mortgages and other property
loans, contact us @ propertyloans@realrenta.com
Marlene Liontis
Sunday, 23 February 2020
