• Question
  • Payment of loan

    Asked on 9/28/2012

    My current mortgage payoff is approximately 53K, house is valued at approximately 105-110K. Does Reverse Mortgate assume the remainder of my current mortgage from my Mortgage company? When I receive the lump sum amount,as I would like to have,You mentioned that the full loan amount would be due upon my death. How do you secure the remainder of the loan,assuming there is any left or there might be some left after I am deceased? Are any of my relatives obligated to pay were I to die befor the loan is paid off,or do you acquire the house minus the interior furnishings?.

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  • Categories: Reverse Mortgages, Reverse Mortgages & Heirs

Answers

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  • Editorial 

    Editorial 
    NewRetirement

    San Francisco, CA

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  • You have asked many good questions about Reverse Mortgages, I hope I can answer them all for you.

    1) In your situation you may or may not be able to access any lump sum of money from a Reverse Mortgage. The main financial benefit to you would be the elimination of all monthly mortgage payments.

    If you were to secure a Reverse Mortgage, your Reverse Mortgage loan amount would be used to pay off your existing $53k mortgage -- thus eliminating all monthly mortgage payments you are currently responsible for. Depending on your age, current interest rates and your actual house appraisal, you may be eligible for an additional modest amount of money -- which might end up being between $1,000 -- $10,000.

    You can get better estimates than I can provide by using the NewRetirement Reverse Mortgage Calculator:
    https://www.newretirement.com/Services/Reverse_Mortgage_Calculator.aspx

    2) The Reverse Mortgage becomes due when you die or no longer live in the home. Most families repay the Reverse Mortgage by selling the home after the death of the borrower -- sometimes the heirs receive some benefit from the sale, other times the full sales amount must be used to pay off the Reverse Mortgage. However, with a Reverse Mortgage you or your heirs will NEVER owe more than your home’s value at the time the loan comes due – even if the lenders have paid you more money that the value of your home.

    3) The Reverse Mortgage is only a loan on your home. Your personal belongings are not included in the loan.

    I hope these answers are useful to you. NewRetirement will be happy to answer any additional questions you might have.

    You can call us toll free at 866 441 0246. Or, if you would like us to connect you to a prescreened Reverse Mortgage lender, continue to the following link:
    --> https://www.newretirement.com/reverse-mortgage-marketplace.aspx

  • Login to rate this answer:   Answered on 10/2/2012
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.