If you’ve been a homeowner for a while and you are 62 or older, then you could be eligible for something called a reverse mortgage. There is a chance that you are already aware of this option, and there is also a chance that you have used it. That is why you have started thinking about the possibilities of refinancing it now. Of course, you could also be not quite sure about how all of this works and you want to get properly informed both about the reverse mortgage and about the refinancing possibilities before grabbing any such opportunities.
Well, here’s something that can get the learning process started: investopedia.com/mortgage/reverse-mortgage/.
Anyway, regardless of what your specific case may be, there is one thing nobody can deny here. Basically, you want to get properly informed on all the options and you are interested in learning whether a reverse mortgage can be refinanced at all, and how that is done if the answer is yes. Well, you’ve come to the right place, because that is precisely what we are going to be talking about today. Thus, if you keep reading, you’ll get the answers you need.
What is a reverse mortgage?
Before we get to the part of talking about the refinancing possibilities, we first need to make sure that you know precisely what a reverse mortgage is. After all, there would absolutely be no point in getting a bit deeper into the conversation without first covering the basics. That is why we are now going to cover the vary basics and then proceed towards talking about the details and answering all your important questions.
In short, a reverse mortgage is essentially a loan. In order to get it, you need to be at least 62 years old, and you need to be a homeowner. Why are those factors important though? Well, it is quite simple. Overtime, you will have gained considerable home equity as a homeowner, and the reverse mortgage opportunity allows you to take out a loan against sad equity.
There are options as to how you want to receive the money from the loan. So, you can go for getting a lump sum, or you can agree on fixed monthly payments, or perhaps on a line of credit. Those are all some rather amazing options and which one you’ll choose depends solely on you and your specific needs. If you’re now feeling ready to learn about the refinancing option, go here.
There is one more thing I have to explain before we start talking about refinancing, though. Since you’ll be borrowing money against the value of your home, you won’t actually be obliged to make any monthly mortgage payments. That might sound too good to be true, but if you think about it carefully, you’ll realize that it is quite logical and that you can benefit from such an opportunity greatly.
Can you refinance it?
Now that you understand what a reverse mortgage is, you undeniably want to talk about the refinancing solutions. The main question here is whether you can actually refinance your reverse mortgage at all, or not? Well, let me begin by giving you a clear and short answer here. Yes, refinancing a reverse mortgage is definitely a possibility.
Why would you think about it in the first place, though? Well, there are a lot of reasons why you might want to do this. For starters, you might want to add your spouse to the loan. Or, perhaps you would like to get better and more secure terms than the ones you have agreed on in the past. Of course, there is also the possibility of lowering your interest rate after some time has passed, which is another great reason why people think about refinancing in general.
How to do it?
The bottom line here is that you can undeniably refinance reverse mortgage in order to achieve any of the goals that you have in mind. So, your reasons are your reasons and I am sure that they are completely justified, meaning that we won’t talk about those any more. Instead, we need to proceed to the more pressing issue of helping you understand how you can actually do this.
First things first, you’ll have to check if you are eligible for the refinance solution. There are certain property and borrower qualifications that you have to meet in order to be eligible. Once you determine that this is an option for you, the next thing to do is start shopping around for the right loans.
This is rather important since you want to get the best possible deal. Otherwise, there would be no point in refinancing at all. Once you have researched numerous different solutions, you will be ready to choose the right one for you and apply for the new loan.