Estate Planning and the Mortgage on the House
Many people feel uncomfortable talking about their estate planning, but the mortgage on the house is an integral part of homeownership. Mortgages come from the Old French words mort and gage, meaning “death pledge.” In a perfect world, your heirs would inherit the house and the mortgage if you die. Unfortunately, this rarely happens. There are a few things you can do to 주택담보대출 ease the burden of estate planning. Listed below are some of the most important things you should know.
If you have a mortgaged house, you should obtain homeowners insurance to protect yourself and your investment. Your lender requires proof of homeowners insurance to close the loan. This is to protect the lender’s investment, so they want to know that you have coverage to cover all types of disasters, including fire and theft. Although a mortgaged house may have a lower insurance rate, the coverage should cover 100% of the estimated cost to repair or replace the property in the event of a covered disaster.
An escrow account, or pre-authorized deposit, for a mortgage on a house, adds predictable monthly expenses to the borrower’s account. The lender will send you a written notice if you fail to meet an escrow agreement, and you must report a corresponding escrow statement annually. It outlines all amounts paid, drawdowns, overages and shortages.
A reverse mortgage on a house can be obtained through a loan agreement between the lender and the borrower. Generally, a reverse mortgage borrower does not have to make regular payments on the loan. However, the borrower must pay back the loan in full when they pass away, sell their home, or no longer consider it their primary residence. In some cases, a reverse mortgage may be available if the borrower is confined to a nursing home for an extended period.
Buying a home with seller financing
When buying a home, you might be considering a seller financing option. It can be a great way to get into a home without paying a large down payment. Plus, it can eliminate the need for private mortgage insurance. Seller financing also has lower closing costs than a traditional mortgage. Here’s how to get seller financing for your home. Once you have secured a seller financing option, it’s time to get in the home buying process!
Transferring a mortgage to heirs
If you have a living trust or a transfer-on-death deed, you can leave your house to your heirs. But if you don’t have a living trust or a transfer-on-death deed, you can’t do this. In these cases, you can leave your home to your heirs in your will. But remember that you can’t pass along any co-borrowers or co-signers with the mortgage. You can, however, transfer the mortgage to your heirs under federal law.