Reverse mortgages were originally developed so that elderly citizens could utilize their home equity without having to sell their homes. It is a possibility to refinance an existing reverse mortgage in order to obtain different loan terms or interest rates, and this process is known as a reverse mortgage for refinance. Although reverse mortgage for refinance can come with many benefits, it is not always the optimal decision for certain situations. Dan Turner at Geneva Financial, can work closely with you to determine if a reverse mortgage for refinance is the best step for you when refinancing your home. We work with clients throughout the areas Hawaii, Illinois, and Ohio. Contact us today to compare your home refinancing options.

The Basics of Reverse Mortgage for Refinance

A reverse mortgage allows homeowners that are 62 years or older to exchange a portion of their home equity for cash while the lender places a lien against the property. In a reverse mortgage, the borrower does not make payments to the lender, instead, the lender makes payments to the borrower. Interest on the loan accumulates, while the repayment on the principal and interest are deferred until you no longer occupy the residence. Oftentimes, this can be a way for retired people to supplement their income, but at the same time, it does lessen the amount of equity in your home.

What Are the Benefits of Reverse Mortgage for Refinance?

Reverse mortgages can be refinanced, but borrowers should only consider refinancing their reverse loan if it proves to be advantageous towards their circumstances. Essentially, you would attempt to replace your reverse mortgage with an ideally better one with a different monthly payout or a different interest rate. If it has been a long time since you closed on your home, rates may have lowered and you could switch to a more beneficial rate. Refinancing could be favorable in the event that a spouse is added to the loan, because that would allow them to stay in the home and extend the reverse mortgage benefits if you pass away. Another benefit is that your home may have increased in value, and there is a larger amount of equity you would be able to access with a refinance.

How Do You Qualify for Reverse Mortgage for Refinance?

Reverse mortgage for refinance does require some specific requirements, including:

• You must be 62 years or older
• You must be able to meet the additional financial responsibilities of home ownership, such as having homeowner’s insurance and paying property taxes
• You must live in the home as your primary residence
• You must own the home or have paid a considerable amount of the initial mortgage

Get Help Today to Refinance Your Reverse Mortgage

Choosing to refinance your reverse mortgage can be a challenging decision, and should be considered only if it proves to be advantageous for your unique circumstances. Dan Turner at Geneva Financial can work with you if you are thinking about refinancing your reverse mortgage in Hawaii, Florida, California, Washington, Illinois, or Ohio. Contact our team today to help determine if this refinancing option is right for you.