What if I already have a mortgage?
If you already have a mortgage and:
- Want a reverse mortgage: You must use part of the reverse mortgage proceeds to pay off the existing mortgage
- Want a Seniors HELOC: You must use part of the Seniors HELOC proceeds to pay off the existing mortgage
- Want a Seniors Mortgage: You don’t need to pay off existing financing so long as 1) you have enough equity; and 2) the Seniors Mortgage is a second mortgage
Note: Second mortgages always have higher rates than first mortgages. Often the rate difference is 3-6% or more. The benefit of a second mortgage is that you can leave your existing mortgage untouched.