Do I have to have equity to qualify for a reverse mortgage? Can I get a second mortgage when I have a reverse mortgage? Can I re-fi my first mortgage?
When you apply for a reverse mortgage you must have equity available in your home. The amount of money that you receive will be based on the value of your home versus what you currently owe on the house. If your home is paid in full you will be able to qualify for the full value of the house. If you owe a lot on the mortgage you may not be able to receive a reverse mortgage until the balance is paid down.
Can I get a second mortgage when I have a reverse mortgage?
When you have a reverse mortgage you will not be able to qualify for a second regular mortgage. A second mortgage is basically an equity line, based on the amount of equity available in your home. If you have a reverse mortgage all your equity is currently accounted for and you can not borrow against that amount. Value increases in your property may allow you to refinance the reverse mortgage if the increase is significant. Verify all fees and associated costs before refinancing.
Can I re-fi my first mortgage when I have a reverse mortgage?
If you apply to refinance your first mortgage when you have a reverse mortgage, you will need to pay your reverse mortgage off in full. You will no longer receive any benefits from the reverse mortgage at that time. A reverse mortgage is based on the equity of your home. If you re-fi your first mortgage you will be required to pay back any money that you received, plus interest, on the reverse mortgage and it will then be canceled.
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