Are you looking for a Mortgage Life Loan or Reverse Mortgage ? Do you know exactly how it works and how can you request it? Here is the useful guide that collects all the useful information to get information on the necessary requirements, the documentation, how it works, what are the advantages and costs.
2019 Mortgage Loan 2019: what it is and necessary requirements
With the arrival of the new year 2019 you may need to apply for a mortgage or reverse mortgage loan . What is it? When can I sign it up?
As you can guess, this is a loan agreement reserved for owners of real estate that are already 60 years old.
Thanks to this credit product, the instant subject has the opportunity to benefit from the provision of a substantial financial capital, even up to about € 350,000.
Compared to a “classic” loan, the applicant must not repay any installment for his entire life. Yes, you understood very well!
The financial capital granted by the creditor institution is guaranteed by a mortgage on the property owned.
Documentation to apply for a lifetime mortgage loan
Here are the necessary documents to be presented to the creditor to apply for the lifetime mortgage loan:
- Copy of the identity document
- Fiscal Code
- Family status
- Preliminary Notary Report
How does the lifetime mortgage loan work?
The mortgage loan is a non-finalized loan agreement : the instant person can dispose of the money as he sees fit, without having to justify the reasons for requesting the loan.
Only with the death of the applicant, except for early voluntary repayments, will interest be repaid on the debt and related expenses.
On the death of the deceased , any heirs will have two possibilities to repay the debt :
- let the creditor institution sell the property and satisfy the sums to cover the debt (any excess amounts will be returned to the heirs);
- repay the obligation assumed by the deceased and keep the property on the estate.
Mortgage annuity loan: when is it convenient?
The mortgage life loan is worthwhile when the sale price is higher than the assumed debt; the remainder will be collected by the heirs of the owner, once he has died.