Yes! You can refinance a Reverse Mortgage

Your situation and needs change over time so why shouldn’t your reverse mortgage? Deciding whether to refinance your reverse mortgage loan can be a daunting task, but we are here to take the headache and confusion out of refinacing and provide you with all the information you need to make the right decision for you and your family. 

You should take the time to consider the following questions to see if refinancing makes sense for you.

• You can refinance a reverse mortgage to change the existing loan terms. 
• You can move to a different type of mortgage. (traditional mortgage) 
• You can change your payment disbursement. 
• You can refinance from an ajustable to a fixed rate.
• Reduce the interest rate.
• You want to add your spouse to the loan.
• Your Heirs want to keep the home

Refinancing is an easy way to solve many of your reverse mortgage worries. Getting a lower monthly rate reduces the amount of interest your lender adds to the balance and paying less slows down the rate at which the equity decreases over the life of your loan, just makes sense.

Be sure to check out our reverse mortgage center to get the information you need so you can make a sound decision for you and your family.

 

Additional Reverse Mortgage Information

How to refinance a reverse mortgage

The steps to refinance a reverse mortgage are similar whether you’re moving into another reverse mortgage or a traditional loan. However, your eligibility requirements will depend on what type of loan you’re refinancing to.

How to refinance a reverse mortgage to a new reverse mortgage

How to refinance a reverse mortgage to a traditional mortgage

Check your eligibility. You must meet borrower and property qualifications to refinance a reverse mortgage. Depending on the type of reverse mortgage you’re applying for, you’ll need to meet FHA requirements or those in place at the private lender, local government or nonprofit organization. Shop around for loans. Compare interest rates and loan terms among multiple lenders. Apply for the loan. You’ll need to supply your financial and property information to your lender. Proceed with underwriting. If approved, your loan will move to the underwriting process. Your lender will order a home appraisal, and you may need to provide additional information. Close on the loan. Once the underwriting process is complete, you’ll close on the loan. You’ll need to pay closing costs, upfront fees, review final loan documents and decide how you wish to receive the funds.

Check your eligibility Depending on the type of mortgage you’re applying for, you’ll need to meet the loan program’s borrower and property requirements. Shop around for loans. Compare interest rates and loan terms among multiple lenders. Apply for the loan. You’ll need to supply your financial and property information to your lender. Proceed with underwriting. If approved, your loan will move to the underwriting process. Your lender will order a home appraisal, and you may need to provide additional information. Close on the loan. Once the underwriting process is complete, you’ll close on the loan. You’ll need to pay closing costs and review final loan documents.

Pros	Cons
Can provide access to more home equity. Can lower the interest rate on the loan. Can change the payment option and interest rate type. Can preserve remaining equity in the home (if refinancing to a traditional loan). Can slow down the pace at which home equity decreases.	Incurs additional fees. Closing costs and fees can eat into home equity faster. Can make it harder to pay back the loan. Can increase total debt amount. Can be hard to qualify for.

At Capital Funding we’re ready to find the right reverse mortgage refinancing solution for you. Our staff of reverse mortgage experts will help you evaluate your mortgage needs and draft a plan that will save you money.