Refinancing A Reverse Mortgage Loan

What s different about reverse mortgages is that you don t have to make payments to the lender and the loan doesn t need to be.

Refinancing a reverse mortgage loan. Many consumers use reverse mortgages to help supplement their income in retirement. If you already have a reverse mortgage loan and have experienced a good amount of appreciation in your homes value you may be able to take advantage of a larger reverse mortgage loan amount by utilizing the current appraised value of your home. The process varies from lender to lender but the general flow looks like. Reverse mortgages are a form of home equity loan through which the homeowner exchanges some of the home s equity for cash and the lender records a lien against the property.

A lot of information about reverse mortgages is usually geared towards senior homeowners who have not yet gotten a reverse mortgage and have questions about obtaining one. How to refinance a reverse mortgage loan. A reverse mortgage is a type of loan that s reserved for seniors age 62 and older and does not require monthly mortgage payments. Instead the loan is repaid after the borrower moves out or dies.

These are the same costs that must be paid with a new loan which we cover here. Complete a reverse mortgage application. A reverse mortgage is a type of loan that is used by homeowners at least 62 years old who have considerable equity in their homes. Is a loan that enables homeowners aged 62 or older to borrow against the equity in their home without having to sell the home give up title or take on a monthly mortgage payment.

Most applications can be completed online but help is available from your lender in person or over the phone. Meet with an fha approved reverse mortgage counselor. The home equity conversion mortgage hecm is the most common type of reverse mortgage and is administered through a program under the u s. The one exception is that the borrower must only pay a mortgage insurance premium on the increase in the home s value.

However for those senior homeowners who have already obtained a reverse mortgage there is an option you may not have heard about that you should explore as it may prove quite advantageous. Of course there are closing costs associated with a reverse mortgage refinance. Reverse mortgage refinance calculator. Is reverse mortgage refinancing a good idea.

The monthly premium accrues on all fha reverse mortgage loans and it is currently based on 1 25 of the outstanding balance for renewal of the insurance â the insurance protects you in the event the lender ever goes out of business and you are still looking for payments on your reverse mortgage loan it protects the lender in the event of default or excessive loan to values and without the. Of course refinancing into a conventional loan means having to make regular payments toward the mortgage rather than receiving payouts as you would with a reverse mortgage.