Yes. Many Kansas and Missouri homeowners who get a reverse mortgage still owe money on their home. The reverse mortgage pays off the existing loan at closing, and that monthly payment goes away.
How it works
At closing, the reverse mortgage proceeds pay off your current mortgage first. Whatever is left can be taken as a lump sum, monthly payments or a line of credit. If your existing balance is small compared to your home’s value, you may have money left over. If it is large, the reverse mortgage may only cover the payoff, which still removes that monthly mortgage payment from your budget.
How much equity do you need?
There is no single number. It depends on the age of the youngest borrower, the home’s value and current interest rates. As a rough guide, homeowners who owe about half their home’s value or less are more likely to qualify. If the reverse mortgage would not fully pay off your loan, you can sometimes bring cash to closing to make up the difference.
Common questions
Will I still have any payment after?
No monthly mortgage payment is required. You still pay property taxes, homeowners insurance, HOA dues if any, and keep the home in good repair.
Can I pay off a home equity loan or HELOC too?
Yes. All liens on the home are paid off at closing, including second mortgages and HELOCs.
What if I am behind on my mortgage?
A reverse mortgage can sometimes resolve that, but timing matters. Call before a foreclosure sale date so there is time to close.
Related: How it works · Who qualifies · Costs · For families · FAQ · Service areas
Talk to a real person in Kansas City
Steve Clune is a licensed loan officer for Kansas and Missouri. Call or text with your questions. If you miss him, send a text and he’ll get back to you.