Reverse mortgae
Another significant financial tool available in the “Meni Group” is a reverse mortgage. A mortgage that allows borrowers aged 55 and over to enjoy unique mortgage terms that allow them, among other things, to benefit from the purchase of assets, certainly today when many young couples depend on the mercy of their parents. The need to realize and use the tool of a reverse mortgage, also known as a pension mortgage, has become relevant and significant in recent years in Israel, in view of the increase in life expectancy of the elderly, with a significant portion of them finding themselves in a shortage of means of financing during the pension period – a period that should actually allow the elderly to live comfortably and financially.
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How do I redeem a reverse mortgage?
A reverse mortgage is suitable for those aged 55 and over who own a property that they can pledge and thus use in return for it as a loan, whether it is using the same loan for daily living, financial assistance to family members, moving to sheltered housing or any other need. In a reverse mortgage, there is no need to pay current monthly repayments. Therefore, the realization of the mortgage does not require an examination of existing income, there is no obligation to hold life insurance, when at the end of the same process it is possible to sell the borrower’s property and return it to the lending entity. This is in addition to the accrued interest, which can even be financed, in most cases, from the increase in the value of the property over the years.
Combined reverse mortgage track
The existing need to realize a mortgage for those aged 55 and over varies for every person. In some cases, borrowers need a considerable sum of money to realize a significant expense for themselves or their family members. In other cases, there is a need to allow the borrower a higher monthly budget than what he receives as part of his pension alongside other added payments to which he is entitled. The flexibility of a reverse mortgage also offers an integrated mix. A mix that allows the borrower to enjoy an addition to his monthly income along with budgeting in the form of a high one-time payment, whether for the wedding of his children, the purchase of property for his children or any other immediate need. The addition of monthly income can be done in several ways, to ensure that the borrower’s use of the supplement given to him is conducted responsibly. The same arrangement allows, for example, buying at several predetermined businesses (such as supermarkets, supermarkets, post office, etc.) and withdrawing cash each month up to a certain amount. If an unused balance stays each month, this can be transferred to the next month and thus the borrower will be able to enjoy a higher amount for his personal use and needs.
A balancing factor between children and parents
The idea of a reverse mortgage often causes disagreements between the elderly and their children. The idea of realizing a reverse mortgage has and comes from one of the parties, when the opposing party does not agree and connects to the idea, certainly in the face of the knowledge that in most cases the lender will realize the existing property at the end of the loan period. The same factor that can balance and mediate between the two parties is the lender. The realization of a reverse mortgage in the “Meni Group” is done in a way that considers the wishes and concerns of both parties. Through the experience of our professional teams, family members will be able to stay away from a reverse mortgage, while being able to allow the parties the maximum flexibility possible. This is so that the realization of the same mortgage will lead to the desired results without causing rifts and distancing between the family members.
Reverse mortgage – main points:
–Suitable for those aged 55 and over.
– Recovery of principal and interest only after the death of the borrower.
– Recovery of the principal and interest through the borrower’s property or through his heirs.
– There is no need to pay monthly refunds.
Have you concluded that the realization of a reverse mortgage will make it easier and upgrade your life? Need a loan on favorable terms for you or your family?
Contact us today!