What are the benefits to refinancing a Reverse Mortage?
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. 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 to you. This option is the possibility to refinance your existing reverse mortgage.
There are many reasons it may be beneficial to refinance your existing reverse mortgage. It may have been several years since you had closed, and since then, rates may have lowered or it makes more sense to switch from an adjustable rate to a fixed rate. Perhaps your home has appreciated in value, and thus you have additional equity you’d like to tap into, or you have additional equity because of your older age.
Perhaps a higher loan limit may be available to you or you had a private reverse mortgage and would like to switch to the Home Equity Conversion Mortgage (HECM) program, which is insured by the Federal Housing Administration (FHA). Additionally, there may be a need to remove a borrower from the reverse mortgage, or add an additional one.
For all these reasons and for any not mentioned here, it may be highly favorable to refinance. Fortunately, the process to do so is fairly easy. The first step is to contact your Mortgage Masters Group Professional for guidance. They will be able to explain everything in greater detail for your particular situation.
To start the process, you will submit a new reverse mortgage application, and then potentially attend another session with an FHA-approved reverse mortgage counselor. From there, a new appraisal will be done on your home to determine your home’s current value. After this, your new reverse mortgage, with any changes to your loan terms, will be underwritten. Once complete, you will close the loan, and your new funds will be disbursed according to the method you had selected.
Throughout this entire process, your Mortgage Masters Group Reverse Mortgage Professional will be with you to guide and advise you every step of the way. Give us a call today at 1-800-710-9957.
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More Information about a Reverse Mortgage and a Home Equity Conversion Mortgage (HECM)
Consumer Financial Protection Bureau
Are there different types of reverse mortgages?
Home Equity Conversion Mortgages (HECM)
Home Equity Conversion Mortgages