The elderly homeowners who have not yet obtained a reverse mortgage and have questions about doing so are typically the target audience for most of the reverse mortgage information available to reverse mortgage lenders.
However, suppose you are a senior homeowner and have already obtained a reverse mortgage. In that case, there is a possibility that you may be looking to refinance reverse mortgage while in that scenario you should investigate because it has the potential to be quite beneficial for you.
Refinance Reverse Mortgage Riverside County
There are many circumstances in which it could be advantageous to refinance reverse mortgage you already have. It may have been several years since you finalized the transaction. In that time, rates may have decreased, or you may have realized that switching from an adjustable-rate to a fixed-rate mortgage makes more financial sense.
The value of your home may have increased over the years, and as a result, you now have additional equity that you’d like to use; alternatively, you might have additional equity simply because you’re getting older.
You may be eligible for a higher loan limit, or you may have had a private reverse mortgage in the past and would now like to switch to the Home Equity Conversion Mortgage (HECM).
Both of these scenarios are possible. In addition, there is always the possibility that one of the borrowers on the reverse mortgage will need to be replaced by another person or that an additional borrower will be required.
It is possible to refinance reverse mortgage, just like it is possible to refinance a conventional (forward) mortgage. However, due to the one-of-a-kind nature of its construction, the calculations and factors to be taken into account are distinct; as a result, it is typically a good idea to investigate the matter thoroughly and to seek the advice of a financial advisor or mortgage broker like Standard Lenders. When you refinance reverse mortgage, you have the opportunity to pursue several different goals.
Why should you choose Standard Lenders to refinance reverse mortgage?
- Find a way to reduce your interest rate. The annual savings amount to thousands of dollars.
- Get a refund from the lender and have some extra money.
- Restructure your loan & make it convenient for you
- You can pay off your mortgage sooner if you have a lower interest rate.
- Having access to additional funds through the use of refinance reverse mortgage.
Suppose you meet the criteria for a genuine need for additional funds. In that case, you may be eligible to refinance reverse mortgage to increase the size of the loan and secure additional funds. As you get older, most lenders will let you access a more significant portion of your home’s equity. This is because the percentage of equity that is accessible is based on your age. There is also the possibility that the value of your home has increased, which may entitle you to more cash. However, refinancing may not be recommended or available if the value of your home has not increased sufficiently to allow additional funds.
Is it necessary to refinance reverse mortgage?
Be sure you have a firm understanding of why you want to refinance reverse mortgage loan before deciding to do so. Do you require additional cash, or are you just attempting to acquire additional funds so that you can maintain your retirement lifestyle? You must have this conversation not only with your loved ones but also with your financial advisors.
Is it possible to convert an existing reverse mortgage into a conventional loan or some other type of mortgage?
The answer is yes; it is possible to convert a reverse mortgage into a conventional loan or some other type of mortgage. You will need to meet specific eligibility requirements to qualify for the new loan. These requirements will vary depending on several factors; including
- the amount of equity you currently have in your home,
- your capacity to handle the mortgage payments,
- and your credit score.
What is the maximum number of times you can refinance reverse mortgage?
Homeowners can fall victim to loan churning, a practice that some reverse mortgage lenders promote to collect fees from borrowers. HUD rules prohibit borrowers to refinance reverse mortgage more frequently than once every 18 months. This is to prevent homeowners from becoming victims of loan churning.
Refinance Reverse Mortgage Benefits
- It can allow for increased access to the home’s equity.
- Reduces the amount of interest that must be paid on a loan.
- You can change the type of interest rate as well as the payment option.
- The ability to maintain the existing equity in the home (if refinancing to a traditional loan).
- Can reduce the rate at which the homeowner’s equity is being depleted.
Standard Lenders Can Help
Standard Lenders is California’s leading provider of reverse mortgages. We have assisted thousands of homeowners aged 60 and older in gaining access to the equity in their property.
If you are interested in finding out whether or not we can be of assistance to you in your decision to refinance reverse mortgage, please do not hesitate to give us a call and discuss the matter with one of our reverse mortgage specialists.