In the world of real estate, mortgages have been around since ancient times. Within that time, they have evolved and adapted to different financial climates – including asset depletion mortgages. Asset Depletion Mortgages are a unique kind of mortgage that uses one’s assets other than their home as collateral to secure a loan from a lender. This type of loan can be immensely beneficial for people who want or need access to money but who may not qualify for traditional loans due to income or credit limitations. In this blog post, we will answer the question: What is an Asset Depletion Mortgage? And explain how it works in 2021 so you can make the best decision for your financial future!
What Is an Asset Depletion Mortgage? How Does It Work?
An asset depletion mortgage allows borrowers with substantial assets but little income—like retirees and self-employed individuals—to secure a loan. To be eligible, the lender will consider an individual’s investments, bank accounts, retirement funds, and other resources to calculate a notional income based on their value and rate of return over the remaining duration of the loan. This type of mortgage is ideal for those seeking funding without relying solely on regular revenue sources.FOR MORE SOURCE: finvestime.com
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