Reverse Mortgage Montly Payment

Q: I've been looking into a senior-citizen reverse mortgage, although I am "only 72." My survivor's pension was recently cut drastically by $1,300 per month by my late husband's employer, and there is nothing I can do.

A speaker at the local senior-citizens center explained reverse mortgages. They sound pretty good. I can receive $762 per month lifetime payment in my situation. That will greatly help. However, my mother and father lived to be 86 and 94. If I live too long, will my son and daughter have to pay if my reverse-mortgage balance exceeds my home's value when I die? -- Victoria R.

A. No. Senior-citizen reverse mortgages are nonrecourse. That means your home is the reverse-mortgage lender's only security for repayment. If you live to 120, the lender's sole recourse is to sell your home after you die.

If the reverse-mortgage balance exceeds the home's market value when you die, too bad for the lender.

However, as usually happens, after the owner's death and the home is sold, the excess proceeds go to the heirs.

To receive more answers about your reverse mortgage questions, please call 1-888-973-8377 or fill out our contact form.