Paragrapher Free Article

— %100 Original Causerie —

What You can Squeeze out of the Best of Equity Release Plans

The equity buried in one’s home is the net value of the property. This can be calculated by deducting the previous loans and debt secured against the property with its current market value. The equity release plans allow one to convert the equities into cash flow without selling the property or moving out of it.
The equity release plans work the best for the elderly persons. The retired persons want to live their remaining lives with the utmost ease and without facing any financial hazards. After experiencing so many ups and downs in the professional arena, they now wish to live happily till the end of their lives. A strong feel of monetary security assures the smooth sailing during the last phase of the life. But in reality, many a retired personnel gets trifling amount as pension that can hardly cover the monthly expenses. Instead of enjoying the retired life to the fullest, they have to sink into the deep thought over how to manage their day-to-day expenses. If these cash-starving persons own properties they can adopt the equity release plans to give a good run to the rest of their lives.
The equity release plan or life time mortgage policy hands over a part of the value of the residence in exchange for the proceeds that can be earned once the proprietor takes his or her last breath. The equity release plans provide the needy person the required cash flow that can be used for a myriad of purposes besides supplementing the scanty monthly income. One can utilize the proceeds to buy a car, plan a holiday trip or simply to help the children or grandchildren in meeting their needs.
Thrashing out the worst equity release plans to take the best pick is the toughest task the old persons face very often. The requirement of every individual is in great variance with the other. So what works the best for one is the worst plan for the other person. Therefore, the interested persons should approach an expert to guide them to choose the best equity release deal.
The equity release plans can be narrowly classified into two categories—one that yields a lump sum amount and the other that secures the monthly flow of income. The mix and match policies are also available to satiate the needs of a certain section of the borrowers. The value of the property and the age of the borrowers are the two main criteria in the equity release plans. The older a person is, the greater is the amount to be squeezed out of the equities. The best equity release plan must provide the guarantee of negative equity feature which refers to a fall in the debt in the event of any decrease in the property value

Advertisements

May 16, 2010 - Posted by | Finance, Mortgage | , , , , ,

No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: