Can I Get a Reverse Mortgage if I Already Have a Mortgage?

Truth: You can get a reverse mortgage even if you still have a mortgage — in fact, paying off your existing mortgage is one of the most common reasons people get a reverse mortgage.

Here’s how it works:

If you still owe money on your home, you can use the proceeds from the reverse mortgage to pay off your existing mortgage balance. Once it’s paid off, you’re no longer making monthly mortgage payments — which can free up hundreds or even thousands of dollars each month in cash flow.

Benefits of using a reverse mortgage to pay off an existing loan:

• Eliminates your monthly mortgage payment (you still pay taxes, insurance, and maintenance)

• Frees up your monthly income for other retirement expenses

• Keeps you in your home without the pressure of a traditional loan

• Turns your home equity into a financial tool, instead of a locked-up asset

Yes, you can get a reverse mortgage even if you still have a mortgage — and doing so can significantly improve your monthly cash flow. For many retirees, it’s a smart way to eliminate debt, reduce financial stress, and stay comfortably in the home they love.

Learn more about eligibility requirements for a reverse mortgage, situations where a reverse mortgage is best used, and common myths around reverse mortgage that we debunk with facts