Are there reverse mortgages that will let the brower past the house to aires, rather tan sell after death?
percy b asked:
I want a reverse mortgage, however I want my daughter to have the house upon my death.
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I want a reverse mortgage, however I want my daughter to have the house upon my death.
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February 22nd, 2010 at 6:25 pm
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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?
February 23rd, 2010 at 9:33 pm
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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.
February 25th, 2010 at 10:50 am
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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.
February 27th, 2010 at 6:37 am
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All of them do.
If your daughter repays the loan you are taking out then she can keep the house.
March 1st, 2010 at 7:14 pm
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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
March 4th, 2010 at 1:04 am
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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.
March 4th, 2010 at 10:55 am
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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.
March 7th, 2010 at 1:20 am
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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.