Payoff Current Mortgage with a Reverse Mortgage
The most common way Seniors utilize a Reverse Mortgage is to pay off an existing home loan to eliminate the monthly payments. Mortgage payments make up a good portion of a Senior’s monthly expenses and can be a burden for those living on a fixed income. With a Reverse Mortgage, commonly known as a Home Equity Conversion Mortgage (HECM), a homeowner borrower or borrowers can refinance their loan to pay off their existing mortgage and eliminate monthly house payments for as long as they continue to live in the home, occupy it as their principal residence, pay the property taxes and insurance and maintain the condition of the home.
A significant amount of equity in the home is required in order for the Reverse Mortgage to work. The numbers don’t work for everyone but a quick phone conversation with one of our professionals is the first step to determine if it is something that might work for you. For those who qualify they can benefit greatly by freeing up the money they were paying toward their mortgage to be able to use it for other living costs.
NOTE: Depending on the amount of equity, it’s possible to pay off other debts in addition to the mortgage creating even more money for monthly living expenses.