The life expectancy in India has been rising steadily in the last few decades. However, so have the costs of medical treatment. For senior citizens, who have a lack of regular income or financial support from children, this could lead to a financial crisis. Further, gone are the days when the elderly lived with their sons and daughters, depending on them for their amenities and medical needs. The reverse mortgage, introduced by the Union Government in 2007, is an answer to such issues faced by senior citizens, giving them a life of dignity. So what is the reverse mortgage scheme? This scheme is exact ‘reverse’ of plain home loan scheme. In case of a home loan one takes a lump sum loan and repays it in instalments in future. Under the reverse …show more content…
Sharma, a central government retiree, has been living with his wife in an independent home for the last 35 years. His two sons, both settled in New York, have no intention of moving base to India. Husband and wife, well past in their sixties do not wish to live with their sons in a foreign country. Mr. Sharma, a heart patient and his wife a diabetic, have a substantial monthly medical expenditure. Not satisfied with his pension, and not wanting to depend on his sons, for household expenditure as well as medical care, he approached his bank for a solution. The bank advised him to opt for Reverse Mortgage, to ease his monthly expenses. How does a reverse mortgage work? Let us understand the process: When the home is pledged, its monetary value is arrived at by the bank, on the basis of the demand for the property, current property prices, and the condition of the house. The bank then disburses a loan amount to the borrower in the form of periodic payments, after considering a margin for interest costs and price fluctuations. The periodic payments also known as reverse EMI are received by the borrower over fixed loan tenure. With each payment, whether monthly or quarterly, the equity or the individual's interest in the house decreases. A reverse mortgage is an ideal option for senior citizens who require regular income, or if the property is of illiquid nature for some …show more content…
• Maximum loan amount would be up to 60% of the value of the residential property. • Maximum tenure of the mortgage is 15 years and minimum is 10 years. Some banks are now also offering a maximum tenure of 20 years. • Option of monthly, quarterly, annual or lump sum loan payment. • Property revaluation to be undertaken by the lender once every 5
This protected the bank because it ensured that by the time the mortgage is up, they would have their loan and interest fully paid
Veteran United Home Loans Introduction The Veteran United Home Loans was found in 2002 as private financial services and insurance and is the 27th out of 100 best companies to work for according to Fortune (2017); it is one of the nation’s largest private lenders that provides loans to military veterans and their families (http://fortune.com/best-companies/veterans-united-home-loans/). The value of Veterans United Home Loans offers the best, quality customer service in various ways; they strive to be the best provider of VA mortgages as a resource to military veteran homebuyers and their families, so their services can be recognized as valuable and unique to further maintain the leadership in the Veteran Administration (VA) Loan industry. In 1944, the United States government created the mortgage loan, VA Loan that is issued by approved lenders and guaranteed by the U.S. Department of Veterans Affairs (VA). The purpose of the program is to help returning military veterans members purchase homes without needing a down payment or excellent credit because many were faced difficult with credit standard and the requirement for down payment. The program has guaranteed more than 22 million VA loans to help veterans, active duty military
The National Commission of Severely Distressed Housing, whose main purpose was to closely examine public housing, was to identify both problems and solutions to the housing issues. In 1992, the Commission determined that 86,000 of the 1.3 million public housing units were “severely distressed” housing and needed to be demolished (Brooks et al, 2005). The HOPE VI program would
The Federal Home Loan Bank Act was issued to make home owner ship available to people, but this had
Deregulation Act had following effects:- 1. Capital requirement was dropped from 5% to 3% by Federal Housing Loan Bank Board (FHLBB). 2. Banks were allowed to charge 6% origination fee. This fee was charged on any loan the made.
One of theses alternative programs comes from the U.S department of housing and urban development. HUD states their purpose as following,”To improve living conditions for lower income homeowners through either the rehabilitation of their existing home or building a new home if repair is infeasible” Retrieved from http://www.waco-texas.com/housing-rehabilitation-reconstruction.asp. Borrowers must be 80% or below the average earned income, property taxes and insurance must be current and cannot own any other income property. You must qualify for a mortgage, taxes and insurance. A structure is determined feasible for rehabilitation if the rehab costs do not represent more than the after-rehab value of the home or exceed $24,999.
Affordability became a major factor in the home buying process. To help make housing more affordable, builders reduced lot sizes and increased the density of developments. Residential Rehabilitation Assistance Program (RRAP) to repair substandard homes to a minimum level of health and safety and to improve the accessibility of housing for disabled persons. The Winter Warmth Assistance Program in 1971, the first of its kind to provide funds to Aboriginals for urgent repairs to housing in rural areas.
Also, home ownership increases the amount of care people have upon the property owned (Gordon 2004). However, one disadvatantage that affordable housing poses is that more and more people are being priced out of home ownership (Shelter 2015). This means that the rent of house increases and more people are competing for every single
In addition to this, the program is also available to reserve military members. Home Loans
Is It Better to Buy or Rent a House? Matt Oberle Central High Abstract Deciding on buying or renting a house is a very important decision. This paper will focus on the pros, cons, and process of buying or renting a house. Many different factors come into play when making this important financial decision on whether to buy or rent a house.
The reverse mortgage program works by loaning the homeowner money in the form of a credit line, fixed monthly options, or a combination of the two. The money from this program is tax-free and many be used for any purpose, like buying homecare appliances or planning a vacation. Unlike a traditional
What role did the setting of the monetary policy play in the housing market development? This essay talked about the role the setting of monetary policy play in housing market development based on the working paper entitled “ Monetary Policy and the Housing Bubble” from Finance and Economic Discussion Series Divisions of Research & Statistic and Monetary Affairs Federal Reserve Board. Many research suggest that monetary policy was a primary cause of the bubble in house prices and activity. In order to find out about that, we need to go way back to monetary policy rules from 2003 through 2006.
Health care cost has seen to increase gradually as years go by. This has been influenced by major factors such as political influence, emerging chronic diseases, new procedures that are coming up including the technologies being invented for treating illnesses, pricing of medicines and treatment is not regulated and when treating ailment their may arise repetition of tests or a patient gets over treated for a particular ailment. The cost of healthcare has increased due to chronic diseases such as cancer and diabetes etc. The lifestyle people are living in this generation has led to the development of diseases that are expensive to treat or has led to there being over treatment in such for a cure of a particular ailment.
India is able to obtain the competitive advantage over other countries because of the well-trained medical professionals and their dedicated services. The cost of offering health care services is very less when compared to the other Asian countries. The cost incurred for surgery in India is one-tenth when compared to United States or other Western