There is a surprising answer to this question plus secrets that you should know about the question: Can I Refinance A Reverse Mortgage?
The answer to Can I Refinance A Reverse Mortgage? is, surprisingly, yes. A reverse mortgage like other mortgage products can be refinanced. Keep in mind that Just like any other mortgage refinance it must make economic sense to do it.
Can I Refinance A Reverse Mortgage? Yes You Can But Should You?
Before a loan officer would proceed with a reverse mortgage refinance application she would need to find out why you want to refinance. Refinancing to buy a new car or go on vacation is just not a good reason to refinance a reverse mortgage. Costs and fees are very high on reverse mortgage refinances. They can be as high as $10,000. These costs need to be part of the decision to refinance. Some valid reasons to refinance are to modify your home for safety, make repairs or have cash reserves for unexpected events.
Can I Refinance A Reverse Mortgage? You Can And Should Depending Upon These Four Elements
If you refinanced five years ago then you are now five years older. The older you are when you take a reverse mortgage the higher the loan amount can be. Has the value of your home increased? Say the value of your home was $250,000 at the time of the first reverse mortgage and is now $300,000. That means that you have another $50,000 in equity to draw on. Have FHA loan limits gone up since the original reverse mortgage so that your loan amount can be higher. Finally, have interest rates gone down.
Can I Refinance A Reverse Mortgage? What Is The Benefit?
The benefit must be five times the cost of doing the loan.
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