Understanding Reverse Mortgages For Heirs: Questions 1-5
So, your family member is considering a reverse mortgage. What does this mean for them and for you? Well, reverse mortgages involve a lot of detail - too much for a simple blog post. Details (and accuracy) are essential to the team at Arrowhead Title, Inc. , however, and we’ve collected the answers to questions most frequently asked about reverse mortgages here for you. This post answers questions one through five - check back next week to get the answers to the remaining five questions! 1. How Will This Affect Any Inheritance? While tapping into their equity, your parents’ home may be appreciating in value, which could allow for some equity left at the end of the loan. They are also able to live comfortably without having to depend on family members to support them. 2. What Happens If The Loan Balance Becomes Greater Than The Value Of The Home? The Home Equity Conversion Mortgage (HECM) is a non-recourse loan, which means that the borrower can never owe more than what...