In the United States, a new problem has come to its head. More and more pensioners are still forced to pay off their home loans from their pension.
30% of people over 65 pay for a home loan and 21% of people over 75 pay. (In 2001, the ratio was only 22% to 8%) In addition, the average capital debt is $ 88,000, which is not a small amount. (In 2001, it was only $ 43,400.)
Enforcement against homeowners over the age of 50 affected the majority of those over the age of 75, meaning that they were the most likely to go out on the street due to the loss of real estate, which is never a joy, but especially over age 75.
The most common causes of this problem are:
Those involved have bought too big a house
It was not their options, but the maximum amount of credit available that determined the size of the house they bought. You never want a house with 50 million if you only have $ 10-15 million, or a house with 15 million if you have only 3-4 million, even if you would otherwise get a loan.
Due to low installments
The maturity was too long. A real estate loan that you can’t comfortably repay in 10 years is simply too much for you.
An unexpected illness or the death of a spouse disrupted the nicely structured repayment plan. Remember, unexpected things always happen or can happen. What you can be prepared for, prepare yourself (for example, take out risk life insurance) that you cannot prevent, and take it into account when borrowing. Just one example: 45% of American workers are forced to retire earlier than planned. My own illness, the illness of my spouse or parents, the loss of my job, my job loss can all be causes.
Choosing the wrong credit construction
Many people choose a scheme where you only have to pay interest for 10 years. This results in two things: on the one hand, going 10 years out of your life without reducing your debt (on the merits) and on the other hand, an unfavorable market turn (such as rising interest rates or the appreciation of the Swiss franc) hurts you more than also from his capital.
When financially stuck
Many people borrowed money for their house, using their house as a credit card. They thought they would pay back some money before retirement. Wrong. If you have to borrow money, it shows that you are living beyond your means. Rather take back your spending, not fill up the holes with new credit.
The above problem will soon affect a lot of Hungarian people, thanks to the many 20-25 and even 35 year old home loans.
Think about how confident you are that you can pay off your loan until the age of 70 and who will guarantee that nothing will happen to you or your spouse until your calculations are over.
If you spend more than 30% of your income on your loans, you have too much credit. It is worth considering how you can reduce your loan volume.
If you have more than 10 years left on your home loan, you may want to recalculate whether you can take on a bigger repayment so that you can pay off the loan sooner. It is also a solution if you have 2-3 home savings plans and pay it back in 4 years.
If you have bought a real estate property that is too expensive for you, it is better to leave it while you can.
I hope none of you will have to repay your home loan from your pension
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