I would like to find out more about reversed mortgage
How does it work?
What are the benefits?
Who is it for?
Reversed Mortgage
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Re: Reversed Mortgage
My comments:Anonymous wrote:I would like to find out more about reversed mortgage
How does it work?
What are the benefits?
Who is it for?
How it works?
Simple. If you have a property fully-paid up. You can do a reverse mortgage. Basically, they will look at current market value of your property, factor in "interest" they charge you and then work out how much you can "draw" from your property on a monthly basis.
Benefits:
So you can actually continue to stay in this property and yet "extract cash" from the property through monthly "income".
Who is it for?
so it can be one way to supplement a person's retirement funds and retirement income. Thus, typically it's mean for retirees.
Currently only private property you can do reverse mortgage. There's on-going discussion to make this available for HDB flats but nothing has been announced or finalised yet.
Cheers!
Dennis Ng, http://www.HousingLoanSG.com - we help you get BEST deal in Housing Loans in Singapore!
Cheers!
Dennis Ng - When You Master Your Finances, You Master Your Destiny
Note: I'm just sharing my personal comments, not giving you investment advice nor stock investment tips.
Dennis Ng - When You Master Your Finances, You Master Your Destiny
Note: I'm just sharing my personal comments, not giving you investment advice nor stock investment tips.
I think the concept is quite simple, as I have explained. Yes, you can redeem the property.
Renting out rooms entails "strangers" living with you, which to some people might even be more complicated.
http://www.HousingLoanSG.com - we help you get BEST deal in Housing Loans in Singapore!
Renting out rooms entails "strangers" living with you, which to some people might even be more complicated.
http://www.HousingLoanSG.com - we help you get BEST deal in Housing Loans in Singapore!
Cheers!
Dennis Ng - When You Master Your Finances, You Master Your Destiny
Note: I'm just sharing my personal comments, not giving you investment advice nor stock investment tips.
Dennis Ng - When You Master Your Finances, You Master Your Destiny
Note: I'm just sharing my personal comments, not giving you investment advice nor stock investment tips.
risks of reverse mortgage include:
1. fluctuation of property value. If property value plunged, how much and how long you can receive "income" becomes a BIG question mark.
2. fluctuation of interest rates. NTUC Incomes says 5% interest rate is "promotional" rates. What they imply is rates are likely to be higher in future. I always tell people don't hurry to pay off housing loan. It's stupid to pay off Housing Loan when you pay interest rate of 3% to 4% and then you "re-borrow" through reverse mortgage at higher interest rates of 5% or higher. When interest rates go higher, how much and how long you can receive "income" also becomes a BIG question mark.
I called NTUC Income and was "passed" around to speak to 4 different persons, each of them only know very little about reverse mortgage. I really worry for the public who might be jumping into reverse mortgage without finding out all the potential risks and dangers as pointed out by guest.
Cheers!
Dennis Ng, http://www.HousingLoanSG.com
1. fluctuation of property value. If property value plunged, how much and how long you can receive "income" becomes a BIG question mark.
2. fluctuation of interest rates. NTUC Incomes says 5% interest rate is "promotional" rates. What they imply is rates are likely to be higher in future. I always tell people don't hurry to pay off housing loan. It's stupid to pay off Housing Loan when you pay interest rate of 3% to 4% and then you "re-borrow" through reverse mortgage at higher interest rates of 5% or higher. When interest rates go higher, how much and how long you can receive "income" also becomes a BIG question mark.
I called NTUC Income and was "passed" around to speak to 4 different persons, each of them only know very little about reverse mortgage. I really worry for the public who might be jumping into reverse mortgage without finding out all the potential risks and dangers as pointed out by guest.
Cheers!
Dennis Ng, http://www.HousingLoanSG.com
Cheers!
Dennis Ng - When You Master Your Finances, You Master Your Destiny
Note: I'm just sharing my personal comments, not giving you investment advice nor stock investment tips.
Dennis Ng - When You Master Your Finances, You Master Your Destiny
Note: I'm just sharing my personal comments, not giving you investment advice nor stock investment tips.