When Does A Reverse Mortgage Need To Be Paid?
A reverse mortgage needs to be paid off when the house is sold, you no longer intend to use it as your primary residence, or both qualifying owners pass away.
Does Having A Reverse Mortgage Mean That I No Longer Own My Home?
No. You are still the owner of record of your own home. The reverse mortgage does not need to be paid off until you decide to do so or you pass away, whichever comes first. Then it becomes a part of your estate. Just as you would have to in life, taxes, insurance and upkeep on the property must be taken care of until the property is sold or the loan plus accrued interest and fees are paid off.
Will My Home Automatically Revert To The Lender Upon My Death?
Though a reverse mortgage does need to be paid off when the homeowner dies, there is a period of time allotted to do this. Whatever equity exists at the time of your death goes towards paying off the reverse mortgage. Then any heirs to your estate may decide to pay off the reverse mortgage and keep the property in your estate for whatever reason. Maybe they feel it is a good long term investment. Or perhaps one of the heirs wants to live in the home.
How Much Will Be Owed On My Reverse Mortgage When It Needs To Be Paid Off?
This answer will depend on many factors. Have the homes in your neighborhood appreciated in value a great deal? How much did you borrow against your equity originally and what interest rates and fees have accrued that need to be added to the mortgage payoff figure? There are many variables determining the amount that is due when a reverse mortgage needs to be paid off.
Related posts
- How Does A Reverse Mortgage Work?
- With A Reverse Mortgage, Do I have To Pay Anyting On My House?
- When Will I Have To Pay The Principal And Interest On A Reverse Mortgage?
- Can I Refinance A Reverse Mortgage?
- If I Have A Reverse Mortgage And I Die, Does My Family Need to Abandon The Property?
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