How Will a Reverse Mortgage Affect My Estate?

How Will a Reverse Mortgage Affect My Estate?Life after retirement is not as easy as it’s portrayed, coming from a good monthly salary to having to depend on retirement benefits can take a toll on anyone, and that is why most senior citizens who qualify for a reverse mortgage consider it. To qualify one needs to be at least 62 years of age and an owner of property or estate. A senior reverse mortgage is a type of home equity loan where a property owner gives up some rights to their home in exchange for financial support. It is different from a normal mortgage as in this case the lender gives monthly payments to the senior citizen borrower until they decide to sell the house or die. The property owner is responsible for all house bills including taxes and maintenance. The question that most people who are considering taking this loan up as is how will a reverse mortgage affect my estate or property? Here are a few facts that one should know before signing up for a senior reverse mortgage. The responsibility of taking care of your house does not move to the lender, as long as you still live in the property, you will be required to do all payments including insurance, taxes and al maintenance that the house may require. The bank or lender makes monthly payments to you depending on the percentage of the accumulated home equity until your demise, you decide to sell the house or live somewhere else for more than 12 months. In case the bank sells your estate while you are still alive, they will take their cut of the money and give you the remaining money. Upon death, the bank will possess and sell the house in consultation with your heirs. If the amount the house is sold for exceeds the money the money the banks owes you, the difference goes to your heir(s). If by the time of sale the amount owed exceeds the amount that the estate goes for, borrowers who are insured by the federally insured Version of a senior reverse mortgage will have nothing to worry about as the insurance will cover the remaining amount. If by the time of death the heirs decide to keep the estate they can choose another form of payment such as reversing it to a normal mortgage or pay using their money. The senior reverse mortgage does not stop you from making the monthly payment; if you feel like this is possible, then you can as well do it. These are the basically all you need to know about a reverse mortgage if this is an option you would want to explore then you will have to undergo mandatory counseling where you can ask all the questions that you may have. It is important to know what you are getting into and discuss this with your family so as it does not come as a shock to them ones you are gone. A senior reverse mortgage is a great way to help finance your needs during retirement, ensure it is what you want before getting it.