Reverse Annuity

Reverse annuity mortgage A mortgage in which a homeowners equity is gradually depleted by a series of payments from the mortgage holder to the homeowner.

Reverse annuity. A reverse mortgage is a loan available to a homeowner 62 or older who may be eligible to borrow against the equity in his or her home. There were 76351 of these reverse mortgages sold last year up from 43131 in 2005. Reverse-annuity mortgages synonyms Reverse-annuity mortgages pronunciation Reverse-annuity mortgages translation English dictionary definition of Reverse-annuity mortgages.

For instance if half the value of the annuity is exchanged for a second annuity the new annuity will take half the cost basis. Reverse annuity mortgage definition a type of home mortgage under which an elderly homeowner is allowed a long-term loan in the form of monthly payments against his or her paid-off equity as collateral repayable when the home is eventually sold. A reverse annuity mortgage is a loan homeowners at least 62 years of age can take out on the equity in their home.

This is the reverse of the annuity calculator. This means the home will be sold at the homeowners death unless children have the available funds to purchase it back. The classic and increasingly common scenario is that people retire with a single asset.

If you buy those kinds of financial products you could lose the money you get from your reverse mortgage. Experiment with other retirement planning calculators or explore hundreds of individual calculators addressing other. Here you start with the desired annual payment and find the starting principal required to make it happen.

A reverse annuity mortgage has several different names. Or the reverse mortgage can be paid out as a lump sum or line of credit. As an example an annuity owner has a 50000 non-qualified deferred annuity with a 40000 basis.

This type of mortgage is a good option for those who are retired and do not have much liquid assets. 2 The reverse annuity mortgage involves 1 The term beneficiary can mean a single individual or a beneficiary plus spouse. A loan against home equity that provides an annuity to the homeowner and is repayable at the time the home is sold.