Your home does not have to be owned “free and clear” (that is, the entire mortgage paid off) to qualify for a reverse mortgage; however, any existing mortgage or liens on the home must be paid off at the closing of the reverse mortgage. In fact, reverse mortgages are often used to pay off homeowners’ existing mortgages.
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Other FAQs
COSTS & PAYOUT- Q: What kind of reverse mortgage rates and fees can I expect?
- Q: Are there different types of reverse mortgages?
- Q: How can I get the cash from a reverse mortgage?
- Q: What are reverse mortgage costs?
- Q: Are there any restrictions on what I can do with the money?
- Q: When do I have to pay back the loan?
- Q: What is the most I can owe?
- Q: How can I estimate what my costs may be?
- Q: What are reverse mortgage pros and cons?
- Q: What are HUD reverse mortgage requirements?
- Q: What are the reverse mortgage rules or requirements?
- Q: Who is eligible for a reverse mortgage?
- Q: What are reverse mortgage disadvantages?
- Q: How do I choose the best reverse mortgage lender?
- Q: Will the bank own my home?
- Q: What types of homes are eligible?
- Q: If I still owe money on a first or second mortgage, can I qualify for a reverse mortgage?
- Q: How much can I borrow?
- Q: Should I get a Fixed Rate or an Adjustable Rate Reverse Mortgage?
- Q: Am I able to use a reverse mortgage to purchase a home?
- Q: Will a reverse mortgage affect any of my other benefits?
- Q: Is the interest accrued on the reverse mortgage tax-deductible?
- Q: How will this affect the estate I leave to my heirs?
- Q: How can I compare reverse mortgage products and features?