Reverse mortgage loan (1) is a kind of loan that takes the elderly residents who own houses as the loan object, takes the real estate as the mortgage, does not need to be repaid during the period of residence, and expires when the borrower dies, sells the house or permanently moves out of the house, and repays the loan principal and interest and various expenses with the funds from the sale of the house. This kind of loan can be paid in a lump sum or monthly within a certain period of time, or it can be paid freely according to the needs of the borrower within a certain credit line. Loans can be used for daily expenses, house repair and medical care. , unlimited.

Second, what is a reverse mortgage?

"Reverse mortgage loan for housing" means that the elderly with housing property rights mortgage their housing property rights to financial institutions, and the corresponding financial institutions comprehensively evaluate the borrower's age, life expectancy, present value of the house, future appreciation and depreciation, etc. Then divide the value of their house into several parts and pay the borrower cash monthly or annually until the borrower dies. It enables the insured to use the sales money of the house in advance, and the borrower continues to obtain the residence right of the house and is responsible for its maintenance while obtaining cash. When the borrower dies, the corresponding financial institution obtains the property right of the house, which can be sold, leased or auctioned, and the proceeds are used to repay the loan principal and interest, and the corresponding financial institution also enjoys the appreciation of the house.

Reverse mortgage (RM) is one of the products of HomeEquityConversion (HEC), which is a kind of housing-based loan, and its core is to promote many activities such as pension, insurance and real estate. Its target is the elderly who own houses. Without moving out of the house, the old people convert their house assets into cash through reverse mortgage loans, which can be used for house maintenance, daily life, long-term care or other expenses. All debts (including principal, interest and expenses) will be paid when the house is sold, the owner moves out permanently or the borrower dies, and the borrower can also choose to repay all the money voluntarily at any time.

Comparison between Reverse Mortgage Loan and Traditional Mortgage Loan

In a sense, reverse mortgage is equivalent to a "reversal" of traditional mortgage. Homeowners get loans from lenders every month instead of paying loans to banks to buy houses. The traditional mortgage loan is based on the income and credit of the lender, while the house as collateral is only an additional guarantee for repayment, and its total debt generally decreases with the passage of time, while the net assets of the house increase; The reverse mortgage loan is secured by the value of the house itself, and does not need income or credit guarantee (so it is also suitable for borrowers with low income and poor credit). Its total debt increases with time, while the net assets of the house decrease, which can only be repaid when the house is sold, the owner no longer lives or dies. Prior to this, the borrower owned the house. In addition, reverse mortgage is a kind of loan without recourse and can only be repaid with housing assets. If the house assets are insufficient to repay the debt, the borrower does not need to pay the difference between them, so the lender may face the risk that the debt cannot be fully repaid. The fundamental difference between reverse mortgage and traditional mortgage is that the latter must show proof of income, and housing is only a technical guarantee, while the former does not need proof of income and has no recourse, so it is not necessary to repay debts exceeding housing assets.

Reverse mortgage loans do not require proof of income and credit. Theoretically, it is relatively simple to design this kind of mortgage loan, but considering that the real estate price changes caused by future economic changes are very unstable in the medium and long term, it is not uncommon to increase or decrease 40% in five years. In addition, coupled with the randomness of the borrower's remaining residence years, the design of reverse mortgage loan is quite complicated.

3. What is the meaning of housing reverse mortgage pension insurance?

Housing reverse mortgage endowment insurance is a new type of endowment insurance that mortgages all individual houses to insurance companies or banks, and the insurance companies or banks pay pensions.

Definition of housing reverse mortgage loan:

1, housing reverse mortgage refers to the mortgage of housing property rights by the elderly who already own housing property rights to financial institutions such as banks and insurance companies. After the corresponding financial institution comprehensively evaluates the borrower's age, life expectancy, present value of the house, future appreciation, loss and the value of the house at the time of the borrower's death, it subtracts the expected loss and advance interest from the assessed value of the house, calculates the average life expectancy of the person, and divides the house value into several parts and allocates them to. It enables the insured to spend the sales money of the house in advance for life.

2. The borrower will continue to obtain the right to live in the house and be responsible for its maintenance while getting the cash. When the borrower dies, the corresponding financial institution obtains the property right of the house, and the proceeds are used to repay the principal and interest of the loan, and the corresponding financial institution also enjoys the appreciation of the house. That is, "mortgage the property and receive an annuity". Because its operation process is like reverse mortgage business, like financial institutions buying houses from borrowers by installment, it was first called "reverse mortgage" in the United States.

Fourth, what is anti-lending?

Reverse loan, also known as reverse mortgage loan, is a kind of loan that takes the elderly residents who own houses as the loan object, takes the real estate as the mortgage, does not need to be repaid during the period of residence, and expires when the lender dies, sells the house or permanently moves out of the house, and repays the loan principal and interest and various expenses with the funds from the sale of the house.