Many people have repeatedly heard about the reverse mortgage, but still have a vague concept that it is. In fact, the reverse mortgage must be understood as the mortgage, on the contrary, when the bank pays the client interest for housing, which after a certain time, often after the death of the client, will go into the property of a financial institution. The amount of payments depends not only on the market value of housing and the results of the estimate produced during the execution of the loan, but also on the desire of the client. Thus, a person may indicate in the contract that he wants to receive monthly 2 or 5% of the cost of housing monthly, and the bank will transfer the rest of the amount only in the latest payment, when the property is completely transferred to the property of the bank. Who can become a client of the bank and arrange a reverse mortgage? Most often, such a loan is made out by elderly single people who want to receive constant income in old age at the expense of existing real estate, which after death they simply do not need. In addition, people who need urgent financing, which they cannot get in the other way, for example, when applying for a consumer loan or microloan, often make up the reverse mortgage. In any case, real estate, which may be the object of a reverse mortgage, cannot be the only place of residence of the bank’s client, with the exception of life rent agreements that conclude with older people.
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