8/14/2023 0 Comments Sbi reverse mortgage calculatorof years of payment*12, 0, Loan amount, 0) To calculate the monthly payment amount, you can use this excel formula, How do you calculate this monthly payment? Well, all this means is that: If you invest Rs 10,996 per month for 15 years and earn a return of 11% p.a., you will end up with Rs 50 lacs. With these assumptions, the bank will make a monthly payment of Rs 10,996 for 15 years. Let’s assume you take a loan for 15 years. As per SBI website, the loan is given at 10% p.a. We discussed in the previous section that the bank makes the payment to the owner for a certain number of years. What Are the Interest Rates and Loan Tenure? You do not have to pay anything (ever) to the bank under this arrangement. However, you can continue to live in the house so long as you are alive. At the end of the fixed period, the bank simply stops making the payment. Please understand that even though the bank makes the payment for a fixed number of years, it does not get your house at the end of the fixed period. Any excess realized amount will be given to your nominee/legal heir. It can sell the house to recover the amount paid to you. Essentially, after your demise, the bank gets possession of your house. Why does the bank do that? Well, it gets your house when you are not around. Or rather the bank disburses the loan in monthly instalments over a fixed period. Instead, the bank pays you the EMI every month for a fixed number of years. In case of reverse mortgage loans, you do not pay any EMI to the bank. Under other variants of loans, you get a lumpsum amount from the bank and you pay the EMI to repay your loan over the loan tenure. Reverse Mortgage Loans work in a very different way as compared to other loans. You can’t take out a reverse mortgage loan on a let-out property.
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