Can I qualify for a Reverse Mortgage if I have an existing mortgage?
I was asked this question the other day by one of my borrowers in Fresno. The short answer is yes! Of course it is important to note however that you must qualify for more than the amount of your outstanding mortgage so that it can be retired. The other option, if you qualify for less than your current outstanding mortgage amount, is to bring money to the closing table.
The amount that a borrower qualifies for is known as the principle limit factor. This is figured by 3 components. The first one is the borrowers age, then the appraised value of the home, and lastly the expected interest rate.
I always like to remind my clients that even after obtaining a Reverse Mortgage they still retain OWNERSHIP of the home. Which means still being required to pay property taxes and insurance.
If you, or a loved one is considering a Reverse Mortgage as a possible option then it is important to educate yourself thoroughly and work with someone that you can trust. I am here to work for you, and happy to answer any questions you have no matter how big or small they may seem.
Reverse Mortgage Specialist
Serving Fresno, CA and the Central Valley