A
amel
Guest
So this is the story Mum 64 years +Dad 74 years owe 20k on the mortgage they pay 360 euro a month on this and have 5 years to go
and another 10k to the credit union which is paid @ 480 per month .
http://www.seniorsmoney.ie/ this is the business who do the scheme
Given an approximate house valuation of 250,000
an equity release now would provide them with about 45,000.
enough to clear these debts with a little left over for a holiday or 2.
The nice thing about this scheme is that no payments are due until the
house is sold.
Over 20 years, assuming a 6% interest rate, this payment would accumulate to
about 140,000.
But the good thing here is that the house, a bigger asset, is also going
to appreciate.
Assuming only a 4% growth rate for the house, which is quite low given
recent history,
in 20 years it would be worth about 550,000.
If the house value managed to grow at 6%, it would be worth 800,000 in
20 years.
perhaps it is the best plan but I am feeling that the forecast repayment of $140 k in 20 years is too much and 45k will not last very long after the 30k debt is paid plus the usual hidden expenses which will crop up .
My brother who is 26 and employed( but hardly any credit history )has offered to take on the morgage payments but not the credit union,How do we work this out?
and another 10k to the credit union which is paid @ 480 per month .
http://www.seniorsmoney.ie/ this is the business who do the scheme
Given an approximate house valuation of 250,000
an equity release now would provide them with about 45,000.
enough to clear these debts with a little left over for a holiday or 2.
The nice thing about this scheme is that no payments are due until the
house is sold.
Over 20 years, assuming a 6% interest rate, this payment would accumulate to
about 140,000.
But the good thing here is that the house, a bigger asset, is also going
to appreciate.
Assuming only a 4% growth rate for the house, which is quite low given
recent history,
in 20 years it would be worth about 550,000.
If the house value managed to grow at 6%, it would be worth 800,000 in
20 years.
perhaps it is the best plan but I am feeling that the forecast repayment of $140 k in 20 years is too much and 45k will not last very long after the 30k debt is paid plus the usual hidden expenses which will crop up .
My brother who is 26 and employed( but hardly any credit history )has offered to take on the morgage payments but not the credit union,How do we work this out?