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valkas
2 months ago
7

Maury and Bev have saved all their lives and they have been able to pay off their mortgage on their home. Bev is getting elderly

and frail and Maury needs to put her into a nursing home where they can give her round-the-clock care. Maury intends to finance this arrangement by getting a loan where the lender makes payments to the homeowner each month, based on accumulated equity. What type of loan does Maury want to get?
Business
1 answer:
Free_Kalibri [3.7K]2 months ago
6 0

Answer:

Reverse Mortgage Loan

Explanation:

Individuals over 62 are permitted by banks to leverage their property’s equity for a reverse mortgage loan. The financial institution assesses the home's value and provides credit to the senior owners. Generally, the loan amount represents a portion of the home’s equity, issued either as a lump sum or fixed monthly payments.

Maury aims to secure a reverse mortgage loan, utilizing the value of his home to access funds for Bev's care. There is no repayment required on Maury’s part. The bank recoups its investment by selling the home upon the couple’s passing or relocation.

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