What to Do When You Inherit a House
Inheriting a home can be an emotional experience: It’s a gift, but one that comes with responsibility. Along with the value of the asset, including memories and emotional significance, there are practical financial matters that you’ll need to address.
One of the first steps is determining whether the property has an outstanding mortgage. In most cases, heirs are aware of this, but it’s important to know:
• Mortgages today are rarely assumable. You likely won’t be able to simply “take over” the existing loan.
• Refinancing may be the best option. If you qualify, refinancing allows you to create a manageable payment structure and maintain ownership on your terms.
Beyond the loan itself, it’s also critical to review the ongoing costs of ownership, which may include:
• Property taxes
• Homeowner’s insurance
• Utilities
• Regular upkeep and maintenance
Once you have a clear picture of the financial commitment, you can evaluate your long-term options:
• Keep the property as your own residence.
• Convert it into a rental for ongoing income.
• Prepare it for sale if ownership doesn’t fit your goals.
Every option carries unique financial considerations, and understanding them upfront can make the process far less overwhelming.
Inheriting a house is both a responsibility and an opportunity. If you find yourself in this situation, I’d be glad to review your mortgage options and answer your questions.
Contact Peter Salamone, our Residential Mortgage Loan Officer, anytime! He is here to help guide you through the process with clarity and confidence.
