A: Yes, your beneficiaries will inherit the home subject to the mortgage. This means the outstanding balance of the mortgage doesn’t go away when you pass away. Instead, the mortgage remains attached to the property, and your beneficiaries will need to continue making payments if they want to keep the house.
If your estate has enough assets, the executor may use estate funds to pay off the mortgage. However, if the estate doesn’t cover it or if the beneficiaries want to keep the home themselves, they’ll need to take over the payments or refinance the loan.
