Do I need to own my home free and clear to get a reverse mortgage?

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personal, timely and accurate response.

You do not need to own your home free and clear to get a reverse

mortgage. The proceeds of the reverse mortgage can be

used for any purpose, including paying off the current

mortgage and any other liens on the property.

One of the more common reasons to obtain a reverse mortgage

is to improve the homeowners monthly finances by eliminating

the mortgage payment. By replacing the current mortgage

with a reverse mortgage the senior does not have to make that

monthly payment and can keep more of their monthly income

available for other needs. We recently help a client go from

living on $300 month after housing expenses to having over

$2,400 to live on monthly simply by paying off the existing

mortgage plus providing a monthly income from the new

reverse mortgage.

The proceeds from a reverse mortgage are generally tax free

(talk with your tax consultant) and can be a lump sum, monthly

income, an equity line, or any combination that best fits your