The term ‘Mortgage’ is very familiar to most of us. But ‘Reverse Mortgage’? Well that sounds something new right? What exactly is it then? For that let’s see what is Mortgage to begin with. A Mortgage is a loan which we secure from say banks to buy a property for which we pay back through Equated Monthly Installments (EMIs). Based on this we can define ‘Reverse Mortgage’ as the opposite of the simple ‘Mortgage’. In reverse mortgage, we already have the property and on that, if eligible, we can get a lumpsum amount (usually 60% of the property value) from say banks for something like a monthly or a quarterly or in an annual basis. Usually a period like 15 years maximum is fixed to receive the money in the Reverse Mortgage.
The biggest eligibility of the Reverse Mortgage is ‘Age’. In the United States, this scheme is for seniors citizens who are above 62 years of age and in India, it applies to citizens of 60 plus age. Even after applying for the reverse mortgage, the applicant can stay in his/her property. And after his/her death, the heir has to clear the Reverse Mortgage otherwise the property will be taken by the loan giving Source.
While we may not have given the clear picture of the Reverse Mortgage, there are some good counselors and agents to give more clarity about the subject. Before securing a Reverse Mortgage, an applicant will have to fully know about the rules, terms and conditions, the Reverse Mortgage Calculator, and whether he is going to the right source to get the deal or not. One such place is the allrmc which expands to All Reverse Mortgage Company. The allrmc has been helping out senior citizens in the US over the years in the Reverse Mortgage field.