Reverse Mortgage Refinance.
Here are a couple of common questions:
1. Can I refinance my reverse mortgage?
Yes you may. A reverse mortgage is like any other loan. you can refinance any time you choose. Because of the fees associated, you will need to make the determination of whether or not it is worth it to you. If you are refinancing out of a HECM reverse mortgage, you will not have any prepay penalty.
2. Why would I refinance my reverse mortgage?
One of the biggest reasons that refinances are happening today is because the lending limits were recently raised. Now, instead of a county by county lending limit, it is nationwide at $625,000. So the easy test to see if this works for you is if you were unable to use the full appraised value of your home, (you were capped by the lending limit) you may be eligible to get additional money.
Another interesting fact is that when you refinance from a HECM reverse mortgage to a HECM reverse mortgage you fees are significantly less. This is because you do not have to repay the upfront mortgage insurance that FHA charged the first time around.
