Benefits of Reverse Mortgage for Senior Citizens
No matter how well senior citizens have invested their money in the old age, additional cash flow is more than welcome. Amongst the many senior citizen driven schemes that exist in India, reverse mortgage is a lesser-known one. Let’s understand this scheme in detail and how senior citizens can benefit from it. What is Reverse Mortgage? In a word, a reverse mortgage is a loan. A homeowner who is 62 or older and has considerable home equity can borrow against the value of their home and receive funds as a lump sum, fixed monthly payment or line of credit. Unlike a forward mortgage—the type used to buy a home—a reverse mortgage doesn’t require the homeowner to make any loan payments. Benefits of Reverse Mortgage New Source of Income Reverse mortgage serves as a supplementary income source other than traditional investment options such as bank fixed deposits, national savings certificate, post office scheme, etc. All-Purpose Income Senior citizens can use rever