Can Reverse Loans be Refinanced?
The answer is “yes”. Reverse loans are like any other mortgage with the exception the borrower does not have to make any mortgage payments. They simply must continue to live in their home, pay the property taxes and Homeowners insurance on time, just like they ordinarily would do anyway.
And there is no prepayment penalty on the loan being paid off, plus the borrower’s will receive a mortgage interest tax deduction in the year they complete the refinance.
Reverse loans are calculated on the age of the youngest borrower and the value of the home. The older the borrower is and the higher the value of their home, means that they might be able to refinance an older reverse loan, improve their interest and receive more money.
Mortgage interest rates are extremely low, and home values have “shot through the roof”, and many people have more equity in their residence than any other time in the past.
It could be a very good decision to refinance a loan to a much lower interest rate and receive more of their equity and additional money.
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I have had many of my former reverse loan clients contact me to start the process, and now is the best time to do it before interest rates begin to increase in the future.
Don’t hesitate to find out if you can refinance or not, you don’t want to miss out on this opportunity.