The range of financial products offered by banks and similar institutions grows wider every day. That is why we have set ourselves to explain them, one per week.
Today, we will talk about the reverse mortgage, which will allow us to complement a retirement plan with the value of your property. The requisites to enter into a reverse mortgage are: owning a house free of charges and encumbrances (or with only a small outstanding amount to pay) and being over 65.
The idea behind the reverse mortgage formula is that retired people could get an additional income from the value of their property. They would receive a irst payment of up to 20% of the total value of their property and would receive the rest in monthly payments without having to sell the property. Heirs will keep their rights on the property, but at the moment of inheriting it, they would have to choose between paying the incurred debt and keeping the property or selling the property and keeping the exceeding amount after paying the incurred debt.