engleski

The role of reverse mortgage as an option for funding retirement

Seniors looking for a way to increase their monthly cash flow or remove mortgage payments can utilize a reverse mortgage to achieve financial independence and increase cash flow for life. This industry offers a tremendous potential for growth and security to senior citizens. Many seniors which cannot get traditional loans because they do not have the income to support them, can use reverse mortgage technique in most cases as the only way in which they can get money and supplement their income. In other words, reverse mortgages provide option for funding retirement. Reverse mortgages are a sustainable consideration for seniors who are struggling to pay their bills ; they allow older consumers to safely convert the equity built up in their home into cash while maintaining ownership. This paper points out reverse mortgage as a key technique of refinancing for older people in the future and as a business opportunity of the new age. The paper will examine potential implementation and development of reverse mortgage technique on the European financial market with a special emphasis on the Croatian financial market. The paper also analyses potential problems and risks connected with reverse mortgage financing in times of crisis on financial and real estate markets.

retirement funding; reverse mortgage

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