Yes. You can get a reverse mortgage with an existing mortgage. In fact, this is very common.
When you do this, it works as a refinance. Your current home loan is replaced with a reverse mortgage. At closing, your existing mortgage is paid off, and the reverse mortgage becomes your new loan.
The important part is this: you do not have to pay anything off beforehand. Everything happens as part of the same closing process.
The Difference: Monthly Payments Are Optional
With a traditional mortgage or refinance, you are required to make a monthly payment.
However, with a reverse mortgage, that monthly payment is optional.
You can choose to make payments if you want to, but you are not required to. Instead, the loan becomes due when you sell the home, move out permanently, or pass away.
Because of this, many homeowners use a reverse mortgage to eliminate a required monthly payment.
What This Can Look Like in Real Life
For example, imagine someone who is 68, retired, and still making a mortgage payment every month.
That payment may have been manageable while they were working. However, in retirement, it can put pressure on a fixed income.
After switching to a reverse mortgage, that required payment goes away. The home is the same, and the equity is the same, but now that monthly obligation is gone.
As a result, many people find that their cash flow improves immediately.
What If My Balance Is High?
A common question is whether you can still qualify if your mortgage balance is high.
The answer depends on a few factors, including your age, your home’s value, and current interest rates.
If your balance is high compared to your equity, there may not be enough proceeds left after paying off the existing mortgage. In that case, a reverse mortgage may not make sense.
That is why it is important to run the numbers before making a decision.
See If a Reverse Mortgage Works for You
If you want to see how a reverse mortgage with an existing mortgage would work for your situation, we can help.
Call Trevor at 435-359-9000 for a no-cost breakdown. We will walk you through the numbers and give you a clear, straightforward answer.
If you or someone you love has questions about reverse mortgages, refinancing, or interest rates, we’re here to help. Reach out anytime for a personalized review of your options.
Trevor Carlson
President, Reverse Mortgage Specialist
Heritage Reverse Mortgage
435-359-9000
trevor@heritagehl.com
Heritage NMLS #1497455 Trevor’s NMLS #: 267962
1060 South Main Street, Bldg. A, Suite 101B
St. George, Utah 84770
Disclaimer: This is not a commitment to lend. Homeowners are still responsible for property taxes, insurance, and maintenance. Loan terms, conditions, and eligibility may vary. Equal Housing Lender.