What Does Equity Release Mean?

There are times when individuals need some extra cash for a variety of different reasons. For property owners they may be able to use the value of the property to attain this money. This would be done through a equity release program. While this may seem like a quick solution it is one that should be entered into cautiously.

It does come with some expense and it can carry over a lifetime of having to pay it back. It is actually called a lifetime mortgage and if you were to do the equations concerning this it could end up being that you would be paying three times more than what you would be borrowing over a 20 year period. Also, you cannot expect to receive that the full value of your home. With a equity release you may only get 20% of the value of your home.

There are actually two types of equity release programs. One of these is which is the lifetime mortgage which means you can borrow a certain amount based on the value of your home. The other type is a home reversion and this is where you get to sell a share of your home.

When you have financial peace of mind it means that you can enjoy other activities like All British Casino which could put you in a position to win some extra money.

It is highly important that you check out both of these types of schemes very carefully to see what the advantages and disadvantages are that they each carry. It is not a financial situation that you want to enter into quickly. Although it is tempting because you can use the equity of your home to supply you with the money that you require. If you are going with the share option you still have the right to remain in your home but once the home is sold the party buying the shares will get that percentage from the sale price.

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