Having an existing
mortgage does not prevent you from qualifying for a reverse mortgage.
However, you must qualify for enough on the reverse mortgage to pay off
the existing mortgage balance.
For example, if you owe $100,000 on
your existing mortgage, live in a $250,000 home, and you are 70 years
old, you would qualify for about $155,000 on a reverse mortgage. This
would be enough to pay off your existing mortgage in full and leave
$55,000 for groceries, prescription drugs, repairs, pay off credit
cards, or anything else you might need.
On the other hand, if your home were
worth $150,000, you would qualify for about $90,000 which is not enough
to pay off your existing $100,000 mortgage. In this case, you would
need to come up with $10,000 to make up the shortfall in order to move
forward with a reverse mortgage.
Most of my clients are getting a
reverse mortgage to pay off an existing mortgage. As daily living
expenses continue to rise while their income remains the same,
they find it harder and harder to make their monthly mortgage payment.
Before it gets to the point of foreclosure, they replace their current
mortgage which requires payments with a reverse mortgage which does not.
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Posted by: Chinthya — 08/05/2012
You might check out the site that I've listed.Go to the snduett loan forum and do some reading. You might be able to get some ideas on what to do. If you cannot find what you are looking for, post your question. Someone may be able to give you some suggestions. I'm sorry I can't be of more help. I go to the creditboards forums every day, for credit related reading/learning. But I usually go to other forums than the snduett loan forum.
Posted by: George Kallam — 11/16/2010
As a self-employed man 68 years old with approx. $300,000 in equity, how do I receive a loan to make up the cash amount of $20,000 for a reverse mortgage?