Refinancing Your Reverse Mortgage
Though federally-insured reverse mortgages have just recently gained widespread media attention, they have been in existence for over twenty years. If you are someone who took out a reverse mortgage years ago, you may be able to prosper from a refinance.
Reverse Mortgage Refinance Benefits
- Switch from an adjustable interest rate to one that is fixed throughout the life of your reverse mortgage.
- Obtain a lower interest rate on your reverse mortgage.
- Utilize additional equity due to home appreciation.
- Capitalize on additional equity due to the homeowner’s age.
- Benefit from a higher reverse mortgage limit (currently $625,500 throughout 2012!)
- Convert your reverse mortgage to a federally-insured home equity conversion mortgage.
- To add or eliminate a borrower on the reverse mortgage.
How Do I Apply For A Reverse Mortgage Refinance?
1. Submit your information for a free consultation with a reverse mortgage specialist.
2. Depending on the benefits you will receive from the new loan, you may have to attend counseling with a HUD-approved counselor again. Note: If you are refinancing from a proprietary reverse mortgage to a federally-insured loan, you will have to attend counseling no matter what.
3. An appraiser will come to your home in order to assess its current market value.
4. The reverse mortgage will be underwritten.
5. The loan will close and funds will be disbursed to you in whatever option you selected.
When A Reverse Mortgage Refinance Is Not Needed
A reverse mortgage refinance is not always necessary depending on what you wish to do. If you are simply looking to change the way in which your reverse mortgage funds are disbursed, you do not need to refinance your loan. In most cases, this can be done by speaking with your reverse mortgage lender and paying a small fee. One of the benefits of the federally-insured reverse mortgage is that there are protections built-in so that you are unable to refinance if it does not benefit you. To learn more, please inquire with a specialist.
