|Reverse Mortgage is an alias to lifetime mortgage. This type of loan is generally granted to the seniors. Reverse mortgage is exactly contrary to the typical mortgage. In this, you acquire the house before and the cash flow takes place for a fixed tenure. This money can be used as the reverse EMI.
Reverse Mortgage are the supplementary source of income for the seniors. The eligibility criteria for the reverse mortgage are that the home owner should be of 60 years of age, the maximum loan it grants is 60% of the value of the residential property. The borrower can opt for the scheme in monthly, quarterly, and annually. Reverse mortgage India in 2009 provides the existential and substantial expansion.
Reverse Mortgage in Indian Banks
Reverse Mortgage is the scheme offered by the Indian banks in order to help the people. Within the reverse mortgage housing loan, the money should not be paid during the life of the borrower. Under this no payments are to be realized, so the loan balance rises with the time. The value of the home grows over the time period than the loan rates.
The credentials necessary to acquire reverse mortgage are that you and the co-borrowers should be of 62 years of age. You should live in your house i.e. primary residence. Your credit history, income and health are not taken into consideration when you apply for the same. The age of an individual affects the payment for the reverse mortgage. The higher the age of the person, the higher annuity is paid. With the inception of the reverse mortgage, large number of people has taken advantage.
During the death of the borrower, the other spouse can live in that house. In case, if both the spouse dies then the bank will give two options to the heir. They will ask the heirs to settle the outstanding loan and keep the house or in another case they will sell the house on their own. Some of the leading banks offering reverse mortgage in India are Bank of Baroda and State Bank of India.