Refinancing a HECM Reverse Mortgage
With higher lending limits, some borrowers may benefit with additional funds by
refinancing their existing HECM Reverse Mortgage. FHA reduces the cost to HECM
borrowers by collecting a lower upfront mortgage insurance premium for the refinanced
HECM. Reverse Mortgage Store offers additional discounts in the origination fee.
To refinance an existing HECM, there must be an increase in the principal limit. To
determine the increase we need the following information from the HECM that is to be
refinanced (information found on the reverse mortgage monthly statement):
Maximum Claim Amount
Current Principal Limit
Current Loan Balance
Note: Property Taxes and Homeowner’s Insurance must be current and not in default.
Repairs from previous HECM (if required) must be completed.
To calculate the benefit, we also need to know:
Estimated home value
Dates of birth of borrowers
The HECM refinance requires a counseling certificate, loan application and
documentation, appraisal (we will order) and loan documents executed.
Refinances cannot be calculated on the on-line calculator, please provide the above
information and we will issue the refinance calculations including the estimated increase
in funds (if any) and total cost of the refinance.
Call (800) 489-0986 and ask Maggie O’Connell or Jennifer Lock for your analysis.
You can also email Maggie@RMStore.net or Jennifer@RMStore.net