You can get a reverse mortgage to eliminate your existing mortgage which is why many seniors are choosing it to be free of monthly mortgage payments.
The surprising good news is that you can get a reverse mortgage even if you have an existing mortgage on your home. For that reason many seniors are looking at a reverse mortgage as a way of paying their existing mortgage and keeping more of their monthly retirement income. As long as you live in your home, your reverse mortgage does not come due and you pay no monthly mortgage for your reverse mortgage.
What Happens To Your Existing Mortgage When You Get A Reverse Mortgage?
If you qualify for a reverse mortgage, it will pay off your existing mortgage. You will be free of having to pay your monthly mortgage for as long as you live in your home. Finally settling with your home’s current mortgage may be the best part of getting a reverse mortgage. You can still live in your own home and not have to worry about making the monthly mortgage which leaves you free to enjoy more of your monthly income.
How much money will I get after my existing mortgage is paid off?
Once you get your reverse mortgage, your old mortgage will be eliminated. If your home still has equity, that additional money is yours to do with as you choose. The good news is that extra money from your home’s equity is yours to spend and it is tax free. The extra money that is left after your existing mortgage is paid from your home’s equity can be sent to you in a lump sum or in monthly checks.
What bills will I have to pay with a reverse mortgage?
You are still responsible for the upkeep to your property and for your property taxes and insurance. Your house deed is still in your name and the reverse mortgage only becomes due when you no longer live in your home.
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