A Lifetime Mortgage Overview Of The Advantages

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The Lifetime Mortgage is a great way to supplement a person’s income at retirement age. The most common use of this mortgage is to add to the income that they are receiving from the retirement plan at work or what they have saved for retirement. This has become a very popular avenue to increase the income that one will get when they retire.

To put it simply, this is a loan that is made against the borrower’s home to secure an income in the golden years of the person’s life. Basically, the person gets to stay in the home (or retain ownership) and when the person dies, the home is sold to satisfy the amount of the loan.

The borrower can receive either a lump sum from the loan or decide to take a steady monthly income, whichever they desire. In many cases, the lump sum would be the best way to take your proceeds as you would be able to invest the money in any way that you see fit. If one were a wise investor, they could get more monthly income than from the monthly option of the loan.

There are many benefits to this type of loan and can be very good at helping someone have a much better quality of life at retirement. One of the most interesting of the benefits is the fact that if a person were to take the lump sum option, it would be tax free. The benefits to this in it are numerous.

There is even another tax type benefit to this type of loan. The mortgage will help to greatly reduce the amount of total inheritance tax due on the death of the borrower. In many cases, when someone dies, the inheritance is largely tied up in property and the estate is not liquid. When this happens, there is not enough cash in the estate to pay the inheritance taxes and this becomes a burden on the people that are inheriting the estate.

These loans also come with something that is called the no negative equity guarantee. This will protect the person taking out the loan from any future drop in the property market. What this means is that the loan can always be repaid no matter what the value of the home is at death.

The benefits to this type of mortgage plan are numerous. This is of great assistance to anyone that is in need of supplementing their income during their later years.

For additional information about Equity Release Plans Simply click a link to get a Free Equity Release Quote

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Topics: Mortgages | Comments Off

Tags: business and finance, equity release, financial services, lifetime mortgage, Mortgages

Article Citation
MLA Style Citation:
Kang, Sandra "A Lifetime Mortgage Overview Of The Advantages." A Lifetime Mortgage Overview Of The Advantages. 27 May. 2010. uberarticles.com. 16 Apr 2012 <http://uberarticles.com/finance/mortgages/a-lifetime-mortgage-overview-of-the-advantages/>.

APA Style Citation:
Kang, S (2010, May 27). A Lifetime Mortgage Overview Of The Advantages. Retrieved April 16, 2012, from http://uberarticles.com/finance/mortgages/a-lifetime-mortgage-overview-of-the-advantages/

Chicago Style Citation:
Kang, Sandra "A Lifetime Mortgage Overview Of The Advantages" uberarticles.com. http://uberarticles.com/finance/mortgages/a-lifetime-mortgage-overview-of-the-advantages/

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