Refinancing Your Reverse Mortgage In Oregon
One of the misconceptions about reverse mortgages is that once you are in one, you are stuck with that loan for the rest of your life. The reality is that these loans are like any other mortgage. You can refinance them with another reverse loan or a conventional forward loan, or pay them off at any time you want with cash or through the sale of the home.
There are actually quite a few reasons a homeowner may want to refinance a reverse mortgage into another reverse mortgage.
Add A Spouse To The Loan – Until recently spouses that were under the age of 62 were not allowed to be on the title of the property. As you can imagine this poses a slew of problems for a spouse that is not on the title of the home when the spouse that received the loan has passed away. In order to protect their spouses from this tragedy, many people are choosing to refinance into a new reverse mortgage in order to get their spouse on to the title of the home.
Increased Claim Limits – The max claim limit for an FHA HECM loan is currently at $625,000. From 2006 to 2009 this limit was $417,000. Prior to 2006 it was even less. Oftentimes borrowers had a home that was worth significantly more than the claim limits. With the new increased limits they can gain more access to their home’s equity by refinancing.
Increased Home Values – A homeowner that took out a reverse mortgage at the bottom of the market in 2009, would more than likely have a significantly higher home value in today’s market. With an increase in value, as well as now being older they would be able to tap more of the home’s equity.
In order to do a reverse mortgage to reverse mortgage refinance in Oregon you will need to receive a benefit that is five times the cost of the loan. For example, if the loan cost $10,000, you would need to be able to gain access to an additional $50,000 in equity.
There are exceptions to the 5 times rule. These exceptions would include adding a spouse to the loan or paying off back property taxes. Other exceptions can be made on a case by case basis.
Wondering if you can refinance your reverse loan into another reverse? Give me a call today and let’s run a scenario and see if you qualify. There is no cost for me to do this for you.
Give me a call at 541-773-3131 and just ask for Matt Allen, MLO-254296.
I look forward to hearing from you.
I work with homeowners doing a reverse mortgage all over Oregon; Pendleton, Klamath Falls, Medford, Ashland, Grants Pass, Brookings, Roseburg, Eugene, Corvallis, Salem, Portland, Tigard, Lake Oswego, Hood River, Bend, Wilsonville and everywhere else in between.