Reverse mortgage refinance works similarly to how refinancing a conventional mortgage is processed. You get a new loan to pay off the earlier mortgage. But before you explore the road of reverse mortgage refinance, make sure that you will get a better deal (given the circumstances and reason behind why you are going to apply for a refinance) before signing up.
So why should you apply for a reverse mortgage refinance? Here are a few reasons why:
- Lower rates than your original loan. After some time since your closed your mortgage, the current rates may be better. So it would be best if you apply for a refinance so that you get a better deal.
- Property’s value has risen. Additional property value means additional equity that is available for you. Maybe it is high time that you re-check current rates to see if you qualify.
- Making your spouse’s home secured. If in the original loan your spouse is not a co-borrower, when you pass,, that spouse may have nowhere to go. To ensure that your spouse gets to stay in the property until their death, adding them as a co-borrower will assure that your spouse’s residence is secured.
Reverse mortgage refinancing has its positive side and it also has its negative side. Be aware of the interest rate being offered when you apply for a refinance. If you are still not sold out on including your spouse in the mortgage as a co-borrower, remember that surviving spouse will be forced to repay the mortgage in full if you die, or move out of the primary home and into a retirement home or assisted living and they will be evicted.
Those are just a couple of the many possibilities that could happen, so when applying for a reverse mortgage refinance, learn as much as you can. You can contact us for more details and we’d be happy to assist you.