Do you have a reverse mortgage currently, but want to see about refinancing your interest rate? Patrick Kerwin in Dallas, TX, has dedicated himself to helping seniors navigate the finer details surrounding these loans. Give him a call today and get your questions answered!
There may be times when a homeowner who already has a reverse mortgage wants to refinance the loan. The following specifically examines refinancing an existing federally-insured reverse mortgage, otherwise known as the Home Equity Conversion Mortgage (HECM). For homeowners who are looking to age in place¹, a HECM loan may be the right solution and when market conditions such as a low interest rate environment and/or rising home values are present, some may consider to refinance their existing reverse mortgage (HECM) into a new HECM loan. Refinancing in these circumstances could provide access to additional cash (loan proceeds).
¹Borrowers could be subject to foreclosure for reasons including failure to maintain the property or to pay taxes and insurance.
Refinancing an existing reverse mortgage (HECM) isn’t for everyone. However, if the net benefit in available loan proceeds are significant one may choose to pursue a refinance. Even with the costs associated with refinancing, one may determine that a refinance is the right fit to achieve their financial goals. Homeowners are encouraged to seek the advice of a trusted advisor.