Can I Get a Reverse Mortgage If I Still Owe Money on My Home?

Can I get a reverse mortgage if I still owe money on my home? Or, “What if my home isn’t free and clear, am I still eligible for a reverse mortgage?

The answer is…”It depends.” qualify reverse mortgage

If your mortgage balance is relatively small in comparison to the value of your home, then more than likely the answer will be, “yes.”

On the other hand if you owe upwards of 55% or more on the balance of your home compared to its market value, then, probably you will not be able to get a reverse mortgage.

Qualifying for a Reverse Mortgage is Dependent Upon 3 Main Criteria.

1. The amount of equity you have in your home.
2. The age of the youngest homeowner on the title to your home.
3. The current interest rates for reverse mortgage loans.

These 3 factors will determine your eligibility for qualifying for a reverse mortgage loan.

A general rule of thumb is: You should have roughly 50% equity in your home if you are in your early to mid 60’s. If you are older your equity requirement will be less, because your life expectancy is shorter.

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