refinance reverse mortgage

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I am 73. I had taken a reverse mortgage on my house six years back. At present the market value of my house has increased. Can I refinance my mortgage now?

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Hi Austin,

You can refinance a reverse mortgage and it makes sense to refinance when the value of your home increases or there is a drop in the interest rates.

Murphy

Samantha · Posted: Sat Jun 24, 2006 12:20 pm Post subject: refinance reverse mortgage

Hi Austin,

Welcome to Mortgagefit Forums.

A reverse mortgage can be refinanced as the value of your home increases in the market. There are certain factors like when you grow older and your house appreciates in market value and/or interest rates are lower than your current HECM, increases your credit line than what it is.

But you must also take a note of the cost that you will face while you for refinance as there will be substantial up-front loan costs associated with it.

So, when you consider refinancing your reverse mortgage you must look both at the increase in your credit line and the new cost due to refinance. Check with the lenders for the new credit line and the cost involvement.

If you find that the refinance costs are lower than your credit line then it is worth to refinance otherwise it won't be wise to go for it.

God bless you.

For MortgageFit,
Samantha

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I have one doubt. Is selling the property, to repay the reverse mortgage loan, the only option left for the heirs of the borrower?

Samantha · Posted: Sat Jun 24, 2006 1:14 pm Post subject:

Hi Tracy,

No, that's not the only option. The heirs can repay the money by refinancing the reverse mortgage with a traditional forward mortgage.

They can even use other assets for it.

Feel free to ask if you have more doubts.

God bless you.

For MortgageFit,
Samantha

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