Refinancing your reverse mortgage
. Refinancing the original loan could be an option, but is it the best option?
The Department of Urban Development realized this problem and being keen for seniors to see refinancing as a viable option has changed the insurance so that it’s only the value differential that is liable.
If you only took out your original loan quite recently, or your home has not risen significantly in value, refinancing your original reverse option would not be a viable option.
If you think you qualify and believe refinancing your reverse mortgage is right for you, you should first go and talk to the broker you consulted originally. They will be in the best position to advise you on whether this is the best course of action for you.
If you took out the mortgage several years ago it’s more than likely that the value of your home has increased so there’s be more equity to borrow against.
Even if you took out the maximum amount allowed with your HECM mortgage, you may find you can borrow more. This is because the Department of Housing and Urban Development reviews the maximum lending limits each year. Each year the maximum amount that can be borrowed has been raised. So, if you took out your loan several years ago and it was the maximum amount allowable, chances are you can go back and borrow more.
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