Love your low mortgage rate? You may not have to give it up.

The problem it solves

Millions of homeowners locked in low mortgage rates a few years ago. A standard reverse mortgage, the federally insured HECM, has to pay off your existing mortgage when the loan closes. That means giving up your rate.

For many people, that trade is worth it, because it ends the monthly mortgage payment. But if your rate is low and the payment is comfortable, you may not want to touch it. That's where a second-lien reverse mortgage comes in. You may also hear it called a reverse second mortgage.

How it works

• Your current mortgage stays as it is: same rate, same payment, same terms.
• The reverse mortgage is added behind it as a second loan on your home.
• No monthly payments on the new loan. Like any reverse mortgage, interest is added to its balance over time.
• It's repaid later, usually when you sell, move out for good, or pass away.

Depending on the lender and state, you may be able to take the money as a lump sum or, increasingly, as a line of credit you draw on over time.

What you still have to do

You keep paying your first mortgage every month. You also still pay property taxes, homeowners insurance and upkeep, and you must live in the home as your main residence. Falling behind on any of these, including the first mortgage, can cause the reverse loan to come due. Budget for all of it before you decide.

Who it may fit

• You have a low-rate first mortgage and can comfortably afford the payment.
• You have a lot of equity in your home.
• You meet the minimum age. It's often 55, but it varies by state. In Texas, for example, it's 62.
• You'd like money for repairs, paying off other debt, care costs or a safety net, without adding a new monthly payment.

How it compares with a HECM

Rates and costs work differently on each, so the only fair comparison is the total cost in writing, side by side.

How it compares with a HELOC

A home equity line of credit (HELOC) also lets you keep your first mortgage. But a HELOC usually requires monthly payments and qualifying based on your income, and the bank can reduce or freeze the line. With a second-lien reverse mortgage there's no required monthly payment on the new loan. The trade-off: because nothing is paid down, the balance grows, and there's less equity left later for you or your heirs.

When a HECM may still be the better choice

If your current mortgage balance is small, or the payment is a strain, paying it off with a HECM can end that payment completely. That may help your budget more than keeping a low rate. If you're 62 or older, ask to see both options side by side.

Questions to ask before you choose

1. Is it offered in my state, and do I meet the minimum age here?
2. What's the total cost in writing, compared with a HECM?
3. How much would I owe in 5, 10 and 15 years?
4. Can I take a line of credit, or only a lump sum?
5. What happens if I fall behind on my first mortgage?
6. What happens to my spouse if they aren't on the loan?

For more questions like these, see our 10 questions to ask any reverse mortgage lender.

The bigger picture

Private reverse mortgages, including second-lien loans, are the fastest-growing part of the reverse mortgage market. Their total volume more than tripled from 2023 to 2025, according to the National Reverse Mortgage Lenders Association. More choices are good news, as long as you compare them carefully.