There are a lot of variables that come into play here. Starting with your age, if you are a younger senior and you take all the equity out of your house, live to be a ripe old age, your daughter could possibly owe more on the reverse mortgage than the home was worth. Since a reverse mortgage is a nonrecourse loan, which means that only the house has to pay the loan back, your daughter would not be liable for the difference. If the real estate market goes back up and you only takes out what you need to live on, the payoff of the reverse mortgage could be handled with a forward mortgage, to retain ownership of the home.
The best way to find a where you stand and if a reverse mortgage will work for you and your daughter is to contact a reverse mortgage specialist. The information should be free.

With reverse mortgages, the home is always yours. You can refinance out of it or leave it to whoever you want. The loan will need to be paid, but they can certainly keep the home.

What you describe is exactly how the process works. Your daughter still inherits the house, she just has to pay the debt on it. If you don’t want her to owe anything, you can’t borrow. It’s that simple.

There are many types of reverse mortgages. But the major ones are: federally insured reverse mortgages, single-purpose reverse mortgages, and proprietary reverse mortgages. When the federal government provides insurance for the mortgage, it is called federally insured reverse mortgages. Single-purpose reverse mortgages, and proprietary reverse mortgages are financed by the agencies authorized by government, banks and financial mortgage companies. There are pros and cons for each of these mortgages. You need to consider them carefully before submitting your application.

The larger the loan becomes the more the banks will be owed. This simply means that your equity will shrink over time. Therefore when your father passes away you will inherit a smaller portion of the homes value. If you are the majority shareholder, you can opt to keep the home but will be forced to pay off the loan.

you can’t have it both ways . she could probably have it if she paid back the reverse mortgage on your death.- do a reverse mortgage with your daughter now - let her pay you now monthly

There’s a lot of controversy on reverse mortgages - mainly because of interest rates and how it leaves surviving family members to pick up the pieces in the event of death.

I know financial institutions are pushing this - but the AARP warns against them becuase you are basically turning your home over to the bank after you die and any surviving familiy members have no say-so in the possessions and property.

Please do as much research as possible and talk to your immediate family about your choice. There have been reports of people owing the bank MORE than the home was valued at and the family was in financial hardship as a result -

Best of luck!

All of them do.

If your daughter repays the loan you are taking out then she can keep the house.

Hi,

If you are a legal heir, you will be asked to pay. If not, the mortgage company will initiate steps to repossess the house. You will have to take a decision depending on your financial circumstances and willingness to retain the home. It’s better to consult an expert. Checkout for some useful info and tips. Good luck!

If your father is the one who has the reverse mortgage, then yes, you would be required to pay the money back (usually, the house would be sold to pay it off).

Here is information from AARP about reverse mortgages:

Additional information from the FTC:

I hope this helps.

Get a financial adviser……..a good one………this is a very important move……….

no.

what you might want to consider then is a cash out refinance, putting the funds into an account that has automatic payment of the mortgage coming from it and using the cash you need from that account.

With a reverse mortgage, you’ve sold your home with a right to occupy until your death. you cannot leave behind something you no longer own.

If you are looking for a reverse mortgage to receive some much needed cash, you may want to look into a reverse mortgage wholesale loan. This is the perfect way for you to get a reverse mortgageagencies that sell reverse mortgage wholesale lender accounts. These agencies are the Federal Housing Authority, the Fannie Mae foundation and the Financial Freedom Cash Account.

Hud.gov and AARP.org have information.
You must be over 62 but the older the more you get.
The fees are high and interest is high but they are paid when you aren’t using the house anymore.
Getting one too young might restrict your ability to sell and buy another house if you find you don’t want to age in place because the loan is due on sale.
If you have used up your life savings and need the money they are a good deal, if you are leaving an estate of more than you have now it will cost your estate.
I am single without children so will consider them when I am in my last house if I run out of money.
They only loan on about 50% of the value of the house so the payments aren’t huge on a low value house but fees can cost over 15K.

Yes, that is the way most of them work. You are essentially borrowing the equity in your home. You must be 62 years old and have sufficient equity, but it will be passed on to your survivors as you wish, but there will be a mortgage.

Of course not. Why would anyone give you money if this were the case? If you need money now and want your daughter to inherit your house, can you borrow money from her?

A reverse mortgage is a really great thing if you have lots of equity in your home, and you don’t have very much liquidated cash to enjoy your retirement. My mother had a house paid in full in Santa Barbara, CA but was living off of social security checks. I helped her get a reverse mortgage loan from Financial Freedom. Then she was living life to the fullest until she passed away 6 years later. My siblings were livid when they found out she got that loan, because they thought she would eat up their inheritance. But she sure loved life those last years of her life, going to the off-track horse racing, bought a new car, new hi-def tv, remodeled her kitchen with Viking appliances. So, yes it can be a very good thing. But you must remember that it is basically selling your house slowly back to a financial institution. If my mom would have lived long enough, my brother and sister (and me) would not have inherited a dime, but that was ok with me.

Anyways, you can find some info and resources about reverse mortgages here:
….

_____________

You bank can help you out with that………be sure that’s what you want to do……….it works for some people………but its 100% ….. you can’t reverse it………without a big penalty……..

If you are looking for a reverse mortgage to receive some much needed cash, you may want to look into a reverse mortgage wholesale loan. This is the perfect way for you to get a reverse mortgageagencies that sell reverse mortgage wholesale lender accounts. These agencies are the Federal Housing Authority, the Fannie Mae foundation and the Financial Freedom Cash Account.

A reverse mortgage is a really great thing if you have lots of equity in your home, and you don’t have very much liquidated cash to enjoy your retirement. My mother had a house paid in full in Santa Barbara, CA but was living off of social security checks. I helped her get a reverse mortgage loan from Financial Freedom. Then she was living life to the fullest until she passed away 6 years later. My siblings were livid when they found out she got that loan, because they thought she would eat up their inheritance. But she sure loved life those last years of her life, going to the off-track horse racing, bought a new car, new hi-def tv, remodeled her kitchen with Viking appliances. So, yes it can be a very good thing. But you must remember that it is basically selling your house slowly back to a financial institution. If my mom would have lived long enough, my brother and sister (and me) would not have inherited a dime, but that was ok with me.

Anyways, you can find some info and resources about reverse mortgages here:

_____________