Can You Still Get a Reverse Mortgage if You Have a Mortgage?
If you have an existing mortgage, you can still qualify for a reverse mortgage. The way this works is that the reverse mortgage must be in the first lien position so any existing debt must be paid off. You can take funds from the reverse mortgage to pay off the existing mortgage or you can also pay off the existing mortgage using other means such as savings or family member / friend assistance, etc.
As an example, if you still owe $50,000 on an existing mortgage and based on your age, home value, and interest rates you qualify for $125,000 with the reverse mortgage, you can take $50,000 from that reverse mortgage to pay off the existing mortgage and still be left with $75,000 to use as you wish.
One other example would be to have $100,000 left on an existing mortgage and qualify for a $100,000 reverse mortgage. From this example, you’d have nothing left after you paid your $100,000 mortgage, but the main advantage here would be the fact that you have no more mortgage payments and your ability to live in your home for the duration is not based on an existing mortgage.
There are a lot of options when considering a reverse mortgage. This is one of the reasons you’ll get counseling from both your mortgage officer as well as a 3rd party independent counselor as mandated by law. If you’re considering a Utah reverse mortgage, please contact use our easy contact form on the right side of this page and you’ll be contacted by one of our courteous, knowledgeable mortgage professionals.