Enhancing Your Financial Security with a Reverse Mortgage Refinance
Are you looking to turn the equity in your home into usable fund through a reverse mortgage refinance? Home Equity Conversion Mortgages (HECM loan program) are insured by the Federal Housing Administration under the U.S. Department of Housing and Urban Development. They are subject to specific rules to protect the borrower, such as financial assessment, counseling, and more.
HECM Loan Program Qualifications
In order to refinance into a reverse mortgage:
- You must be 62 years of age
- The home be considered your primary residence
- Have equity in your home.
Benefits of a HECM Loan Program
- Loan pays you – can pay off existing liens.
- Loan balance is not due until the last owner moves, sells, or passes.
- Meet financial and personal goals by choosing a Home Equity Conversion Mortgage (HECM loan program).
- Gain Access to tax-free funds.
- Federal Housing Administration insures the HECM loan program.
- Heirs inherit any remaining equity after payoff.
Reverse Mortgage Refinance Overview
Distribution options, funds available, interest rates, and costs:
- May choose from fixed and variable loan rates.
- Some closing fees and closing costs can be financed, which results in little or no upfront fees.
- The amount that is available is based on the youngest or non-borrowing spouse, existing mortgage amount, the lesser of the appraised value of the home, current interest rate, and the sales price maximum spending limit.
- Funds can be used in any way, which can be received as a lump sum, a regular monthly payment, a credit line, or a combination of these options.
- Funds available may be restricted for 12 months after the closing due to requirements for the HECM loan program.