Quote:
Originally Posted by Grunt 1946
So, just for my information, what would happen if you took all the money on your RM out this year but were still living in the home in 2040? Does the money get paid back at that time, assuming your dead, or is there a time limit on when it gets paid back? What if the home is worth 3 times as much in 2040, can you take out a larger RM?
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When you die, your heirs are required to either pay off the loan, or sell the house. The proceeds from the sale are used to pay off the loan, and the heirs can keep any excess. If selling the house will not produce enough money to pay off the loan, the heirs can either allow the bank to foreclose, or they can just refuse to accept the inheritance altogether.
If you have a reverse mortgage and the house increases in value, you can refinance the loan and possibly take out more money.