Refinancing a HECM Reverse Mortgage
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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 Mortgages of Nevada 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 (888) 489-2220 and ask Maggie O’Connell for your analysis. You can also email Maggie@RMNevada.com .