Contractor Profile Of An annuity or a Reverse Mortgage

Specifically, an annuity constituted a property interest is a contract whereby the People over 65 years, receiving a pension for the rest of his life, in exchange for the transfer of ownership of your home, but keeping the right use and enjoyment of it. The calculation of monthly income that corresponds to an older person is made taking into account the value of the property and their life expectancy.

For its part, the reverse mortgage is a home equity credit granted by a financial institution or insurance company, which people over 65 years homeowners may make periodic or arrangement provisions only up to a maximum determined by a percentage of the current appraised value of the floor, without the debt may be required until the death of the last owner or beneficiary, and maintaining ownership of the property. To calculate monthly rents in each case corresponds to the owners of a house, it shall take account of the appraised value of the property as well as age and gender of owners, which determines the life expectancy of each of them.

Annuities are targeted mainly at people who do not have children or want to get the maximum benefit from their homes as monthly rents are 20% - 50% higher than those received by hiring a Mortgage Conversely, in addition to the Annuity benefit from spillovers stop paying overtime to the Community the Property Tax and Insurance Multirisk the continent of housing.

By contrast, reverse mortgages are targeted primarily for children Contracting wish to leave your heirs the remaining remnant of the final value of the property.

Carlos A. Martinez Cerezo, President Director of Retirement Group, said, based on their professional experience, n that 73% of the contracting of an annuity does not have descendants, while the number of people with children who have opted for an annuity has increased significantly as the children themselves are seeking the greatest benefit to their parents.

Among the customers who choose a reverse mortgage, 86% of them have children. The most common profile of contracting for these products is that of a widow or unmarried woman in the age range from 72 to 78 years with a home valued at € 270,000 - € 350,000 located in the Community of Madrid, Catalonia and Valencia.