Refinance Reverse Mortgage Santa Clara
Many homeowners refinance their conventional mortgages to get better terms as they reduce their home loans
Another option is of refinance reverse mortgage, a loan that enables senior citizens to access their home equity without selling or making regular payments.
Here’s how a refinance reverse mortgage operates and when it might be advantageous financially to do so.
Refinance Reverse Mortgage – What it is?
This is known as a refinance, when you use funds from a new loan to pay off an existing mortgage. Homeowners typically do refinancing to get better loan terms, like a lower interest rate or a shorter loan term. You are left with a single loan, and a single monthly payment after your lender uses the new loan to pay off the old one.
Although it’s a standard method for enhancing the terms of conventional (or forward) mortgages, refinancing is also a choice if you have a reverse mortgage. In essence, when you refinance reverse mortgage, you exchange your current loan for a new—and, ideally, better one.
The new loan could be a conventional (or forward) mortgage or reverse mortgage.
Your age will determine the new loan amount for a new reverse mortgage, the value of your home, and the interest rate, just like it would be for a new loan.
The loan’s proceeds may be paid off as a line of credit, as regular monthly installments, or as a mix of the last two.
On the other hand, the new loan will depend on your
If you refinance into a conventional mortgage, just as it would be if you were applying for a mortgage for the first time. A cash-out refinances an option if you require funds for retirement.
With this type of loan, your existing mortgage is replaced by a larger loan, and you get the difference in cash. A home equity conversion mortgage (HECM), insured by the Federal Housing Administration (FHA) and made available by FHA-approved lenders, is the most popular type of reverse mortgage.
Eligibility for Refinance Reverse Mortgage
The prerequisites for obtaining a reverse mortgage for the first time and those for refinancing one are very similar. Refinancing into a new HECM reverse mortgage requires that you:
The property must also meet FHA requirements, including having adequate insurance and being free of hazards to one’s health or safety. A cash-out refinance you to access up to 80% of your home equity as opposed to the 50% to 60% you could with a reverse mortgage.
Refinance Reverse Mortgage Factors
Is It Possible To Obtain A Second Reverse Mortgage?
There can only be one active reverse mortgage at a time for borrowers. However, borrowers who have settled a reverse mortgage may apply for another one. Additionally, borrowers who already have a reverse mortgage can refinance it into a different reverse mortgage.
Why Giraffe Lending?
If you are considering to refinance reverse mortgage, please call us right away. Giraffe is bringing transparency and trust to reverse mortgage applicants. Our goal is to help senior home owners transform their retirement into an exciting and rewarding time.
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