Senior citizens that are ending their working days have a great opportunity to enjoy their retirement by trying out the popular method for loaning money called - reverse mortgage.
A reverse mortgage is a type of loan that banks offer to senior citizens that are not able to get standard bank loans because of their age. That's why there is the reverse mortgage method that provides both lump sum or monthly payments for retired people.
It works on a very simple base. The senior citizen that is asking for this kind of loan needs to have a mortgage on their name. They make an agreement with the bank on the terms and the amount the loaner needs, and in return, the banks get a share of the equity of the property. That's basically it. No monthly returns of money, no nothing - the person asking for the loan is free to enjoy the rest of their life, or until the property is sold.
Before making the deal with a bank, you need to get a reverse mortgage calculator and see how much money you'll get, and what price your property will have if one day you decide to sell it. Different banks offer different terms. Somewhere the person needs to be over 60, somewhere over 62, and some need 65. The percentage of the rates are different too. You might think that being 95 is too far away and you probably won't make it there, but that's just the pessimist talking out of you.
People live and enjoy life after the age of 95 and you should make a good calculation of the rates the banks are offering. Use the reverse mortgage calculator and see how much money you can get now, and how much your property will be valued 30 years later.
It's not the same to be offered 5% and 5,4% interest. This small number now means after a long period of time, your property might be valued differently in thousands of dollars. Even if you don't about selling, make a good deal so your relatives get the best of it after your death.
Another thing that's important and why you must use a reverse mortgage calculator is to see how much money you can get right now. If you have a property that's worth $400.000 then you can easily ask for 100.000 and the mortgage over the property will be valued enough to get a lot of money after you decide to sell it one day and return the loan to the bank.
However, different interests can make a huge price gap from one bank to another. Making a bad deal might make you end up with a loss of tens of thousands of dollars. You don't want to give this money to banks rather than your children, right? That's why you must look for the best option that is fit for your needs.