The Possibility Of Reverse Mortgage Refinance | Phoenix Urban ...

May 28th, 2011 Posted in Mortgage Info

by Fiona Clarkson

You have probably gotten several advertising pieces within the mail. If you have a reverse mortgage, it seems everybody desires to assist you refinance. But you will find issues to think about prior to you invest your cash on a few of the upfront fees.When did you do your present reverse mortgage?You need to have already been in it at least 6 months to become eligible.

So if you are getting solicited for a refinance, there?s no need to even consider it for at least 6 months after you close your current loan.If you did your loan long enough ago, there had been county limits that could have restricted the amount of money you can get. The amount depends on the county, so if you think this applies to you, contact you loan officer and see what might be available.What is your home really worth?Did the value of one?s house all of a sudden change? In most cases, the senior homeowner has taken all the equity that was offered. Since reverse mortgages balances actually grow each month, it may be unlikely that you have much more equity inside your home now, than you did whenever you originally got the loan.That said, it could occur.

Improvements for your house or current sales that had been comparable to your home, or if your home was 1 that was restricted once they had lending limits based on county limits are all reasons that your house might be really worth a bit much more.How much are the fees?There had been substantial fees when you got your reverse mortgage, almost guaranteed. But if your current reverse mortgage is really a HECM mortgage, you have already paid a good portion of the fees. The Mortgage insurance was 2% of what the home appraised for, and also the new loan you want to complete doesn?t require that to become paid again. This can save you thousands of dollars.You will find some lenders willing to waive origination fees also.

In the event you can find one that is willing to reduce the fees down by at least half, you will have saved a few thousand dollars more.Combining the two ways of saving above will save you 75% off more off your fees, bringing the expenses down to a level that seems more comparable to the price of a traditional mortgage. Most HECM refinances could be carried out using the fees well inside 4000-5000 dollars.As you can see, the reverse mortgage refinance is certainly possible. And it?s much more affordable than ever. Refinancing can potentially get you additional money at virtually no expense. But don?t spend any money until you have checked to see if there is any tangible advantage.

Source: http://phoenixlivingnews.com/the-possibility-of-reverse-mortgage-refinance/2011/05/

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