What happens if I outlive a reverse mortgage?
As long as the home is your principal residence, you maintain the home, pay the property taxes, insurance and homeowner dues, then the loan just stays in place with you as the homeowner.
What you are probably referring to is, if, over time you withdraw all the available funds from the reverse “Line of Credit” Then what happens? Again, nothing - you still are the owner of the home with the only obligations referenced in the first paragraph to live, maintain, and pay tax &; insurance on the property. You never have to make any payments on the reverse mortgage, unless you want to. If you did make payments you would find yourself re-establishing a line of credit for future use. (Might be something to consider?)
As long as the home is your principal residence, you maintain the home, pay the property taxes, insurance and homeowner dues, then the loan just stays in place with you as the homeowner.
What you are probably referring to is, if, over time you withdraw all the available funds from the reverse “Line of Credit” Then what happens? Again, nothing - you still are the owner of the home with the only obligations referenced in the first paragraph to live, maintain, and pay tax &; insurance on the property. You never have to make any payments on the reverse mortgage, unless you want to. If you did make payments you would find yourself re-establishing a line of credit for future use. (Might be something to consider?) Or perhaps you elected the “Term Payment” option that provided a monthly payment for a specific period of time, and now that time period is up. Then what happens? Same as above - once all term payments have been disbursed to you by the lender, you have taken all available funds. No more payments would be made - but as long as you fulfill your obligations on the loan by living in the home, maintaining it and paying the tax and insurance expenses, the loan just stays in place and you are the homeowner.
“Tenure Payments” on a reverse mortgage continue for as long as you live in the home, no matter how long you live. If you’ve got a family history of long life, this might be a great option for you!
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