Refinancing a Reverse Mortgage - Some Considerations

Many seniors microsoft exchange hosting realize bill consolidation loan could refinance an existing reverse mortgage. While not being appropriate for everyone, unlocking car insurance cover equity in your home could be possible. However, before doing so, you should first consider costs, eligibility and what accident compensation claim if any, you'll be left with.

Many older people have gained real financial security by unlocking cash from the equity in their home using a reverse mortgage. The money they receive allows them to live life as they want. Combined with the freedom that this money gives them, they are also free of worry from monthly repayments and can relax, knowing that they are guaranteed to receive the amount promised for as long as they continue to live in their home.

However, most don't realize that they could refinance an existing reverse mortgage and get hold of additional funds. Whether you can or not depends on car free insurance online quote things; your current age, current interest rates, size of existing loan and, most importantly, the current value of your home. Generally, the older you are and the more valuable your home, the more you can borrow.

Over the last few years house prices have risen significantly, which means additional equity building up in the home. This, combined with your greater age, makes it very likely that you'll be eligible. Even, if you borrowed the maximum loan amount first time round, you could still find yourself as being eligible - each year the HUD re-evaluates the maximum amount that can be borrowed and each year the amount has risen.

However, before picking up the phone to speak to your broker, you should consider some things. For instance, by borrowing more, you will substantially reduce the equity left in your home. When it comes time to pay back the loan, there may be very little or no equity left.

Also, closing and other costs are usually quite high on this type of mortgage. These costs are not insignificant; they could vary from $9,000 to as much as $200,000 on your home. You would need to know exactly what the closing costs were before proceeding. Talk to your broker as they'll be able to tell you exactly how much the charges would be. However, as a general rule of thumb, you should consider reverse mortgage refinancing if it gives you at least two to four times as much cash as the total amount of closing costs.

Unlike your initial application, counseling is not always required for refinancing but it is strongly advisable that you seek independent advice as to whether it's in your best interests. Also, you should speak to your heirs; it's important that they also feel comfortable with your decision.

There's no doubting that refinancing reverse mortgages is going to become increasingly popular. As house prices continue rise and more seniors become savvy with this type of financial product, the more appealing it will be. Taking all things into consideration and also looking at other financial products is key in making the correct decision about what would be best for you.

The above is a brief overview; follow the links for more detailed advice on findyourreversemortgage.com/reverse-mortgage-refinancing.php reverse mortgage refinancing and findyourreversemortgage.com reverse mortgage information on a HUD, Jumbo or Home Keeper reverse mortgage.