Reverse Mortgage FAQ: Can You Refinance a Reverse Mortgage? The housing recovery and the extension of value limits on the reverse mortgage, have created a potentially beneficial environment for seniors looking to refinance their reverse mortgages. Especially, if your original reverse mortgage was done around 2010-2011, when home values were at their lowest. One of the reasons to consider refinancing your reverse mortgage would be to include a previously non-borrowing spouse in the reverse mortgage after they turn 62 years of age or older. The home that will be used for the reverse mortgage has to have enough equity, however, to be viable and both spouses must live in the home as their primary residence. The new refinanced reverse mortgage will also have lower closing costs than the original reverse mortgage. Before refinancing though, there are a few factors to consider:

Has your home risen in value since you took out the reverse mortgage? If your home value has decreased, you won’t qualify for any additional funds.

What was the Federal Housing Administration’s Value Limit when you took out your reverse mortgage? If it was lower, you will be able to receive more money if you refinance when the value limit is higher.

Is there an outstanding balance on your reverse mortgage loan? If there is, it will have to be repaid before a refinance can happen. This is why #1 is so important.

Are you only refinancing to lower your current interest rate? You shouldn’t refinance just for lower interest rates. Remember, you don’t have to pay interest on the loan until it becomes due, and as a non-recourse loan, you never own more than the current value of your home.

Do you receive monthly payments or have a line of credit? If you still receive monthly income or have a growing line of credit, there is no need to refinance unless you have run out of funds or are coming close to it, want to include a non-borrowing spouse or have another dire consequence.

If you are considering refinancing your reverse mortgage, think it over, consider these questions and, if you still want to refinance, give PS Financial Services a call at (888) 845-6630 or email us at