If I Have an Existing Mortgage, Can I Get a Reverse Mortgage?

If I Have an Existing Mortgage, Can I Get a Reverse Mortgage?

Yes, even if you have an existing mortgage, you are still qualified to get reverse mortgage but your age must be 62 years or above. Reverse credit facility is available only for senior citizens.

Facts:

You can make use of the reverse mortgage to pay off the existing one. The condition is the reverse financial loan should be the first priority while paying off the present loan. You can even pay off these existing debts with the help of family members, friends or from your savings.

Examples:

If you have an existing mortgage of $75,000, even then you are eligible to get reverse loan taking in to consideration your age, interest rate and home value. Suppose you are qualified to get $125000 as reverse mortgage, take $75000 from it and close the existing loan. You still will have an amount of $50, 000 for your use.
When considered in detail, these reverse mortgage facilities have a lot more options. The following example can help you understand them in detail. Suppose you have a loan of $56,000 which is yet to be paid and also you are eligible for reverse financial loans up to $56,000, after payment of existing debt nothing will be left with you. But the major benefit is, after the payment of all your existing debts you have no more loans to pay. That means your capability to reside in your house for the extent is not dependent on existing mortgage as the reverse financial loan doesn’t demand repayments as long as the lender resides in the house.
There are advantages for reverse mortgage and to apply for such a loan no employment certificate or salary slip is needed.

For these reasons, the law emphasizes counseling for those applying for reverse mortgage from a mortgage officer and also from an independent counselor.