In this article I will be writing about the Reverse Mortgage and how it can help you in the retirement. This product is has low awareness among the public. Nowadays few banks started making awareness to the public to sell the reverse mortgage products. This article explains the basic concepts on reverse mortgage. If you like the article please subscribe us.
What is Reverse Mortgage?
This product is most useful for the senior citizens when they are looking for the money after the retirement. The process is to get the monthly income by giving the house to bank as the security. Bank will take the property after you and your spouse’s dismissal. The following are the key facts about the Reverse Mortgage.
- In India only three banks sell this product: SBI, Punjab National Bank(PNB) and Central Bank of India.
- SBI gives 90% of the property value to the customer.
- PNB provides 80% of the property value to the customer.
- The main disadvantage of this plan is only for 20 years. After the period banks will take the property.
- Central Bank of India came up with the life time support. For that they provide only 60% value of the property.
I hope this article will be useful for the senior citizen who are not aware of the products. If you have any doubts, please post it in the comments section.
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