If, when you reach retirement age, let's cross our fingers, you have managed to pay off the debt with your financial institution and you have a home you own, you can turn the mortgage around. How it sounds. That is, you can make the bank pay you a monthly fee for your home, an amount that can be more than help to complete the pension. That is, explained in a very simple way, the reverse mortgage; The bank 'buys' your house - it does not actually buy it, but acquires its equity value - and pays you an amount per month or once.

To be faithful to the definition, the reverse mortgage is a credit or loan with a home equity guarantee that the bank grants to the homeowner and from which he can make monthly payments or a one-time payment. To be able to contract this product, in addition to owning a house, among other things, you must be 65 years or older or be a dependent. You do not lose the ownership of the house, that is, the house continues to belong to you and you can cancel the mortgage at any time (if you do, you must return the amount received up to that moment). This type of mortgage can only be requested on the habitual residence and that can be done by all its holders (a married couple, for example). You may also be interested in Ravenwood Santander Finance Products

The reverse mortgage, as an annuity, is a good way to have a payment that helps to complete the pension. And, compared to other products, it has a special attraction, since the income obtained with the reverse mortgage is not taxed as income in income tax, as it is a loan granted. The amount to be received will depend, of course, on the value of the home, so we must know the appraised value of our property and also know that the loan they give us will not be for that total. Do not forget either that you can have the house as you want, that is, you can, for example, rent it and get other 'extra' money.

At the time of granting us the mortgage, the bank, among other things, will make an estimate of our life expectancy to calculate the installment to be received. The younger we are at the time of hiring it, the lower the amount they will grant us, since it is assumed that we will be able to enjoy it for more years. The contracting of this product usually includes that of a life annuity insurance so that, if we get to enjoy 100% of the loan amount, the insurance goes into operation.

When the time comes, it will be your heirs who will have to decide what to do with the home. They will inherit both their property and the debt generated by the reverse mortgage, that is, the money that the bank has given you until then. They will have to decide between several options: they can sell the house, pay the debt and keep the difference, pay off the debt and keep the house, or sign a new mortgage to pay the debt.

Most financial institutions have reverse mortgage offers and, if you are interested, it will not be difficult for you to find simulators on the Internet to calculate what your income would be.