QUESTION:

Refinance Reverse Mortage

I reversed my mortage 2006. Why does it go against me to refinance? I get $314.00 each month for life now. They tell me that it would cost about $4000.00 to refinance plus I would lose my monthly income. Why did the President say we could get it and it would help us?
asked by Kathryn or Kathy, 2/26/2010
Categories: Mortgage Refinancing
ANSWERS:
Answered by: Jason B, 03/03/10
Overall Rating: Be the first to rate it.

Hi Kathy,

I suspect that when the President spoke of refinancing, he was referring to normal mortgages, not reverse mortgages. Most financial professionals do not recommend that you refinance a reverse mortgage, as the cost is usually too high to justify the benefits it would net you. In order to refinance the reverse mortgage, you must get a new reverse mortgage to eliminate the old one, which means that you must pay the fees associated with the reverse mortgage over again. Unless you will qualify with the new program for considerably more money than you currently receive, it probably is not worth it.

We would suggest using a reverse mortgage calculator (such as the one found on our website at https://www.newretirement.com/Services/Reverse_Mortgage_Calculator.aspx ) to determine if this is right for you.

Login to rate this answer: 1 Star2 Stars3 Stars4 Stars5 Stars

 
    Post a New Retirement Topic or Question  
   
   

Retiring with Debt is Not Advised:
Most financial planners agree, retiring with debt should be avoided. Explore these resources from NewRetirement to help eliminate debt:
Tapping Your Home Equity
Mortgage Refinancing
Retirement 101: Retirement Planning and Retirement Risks
Retirement Jobs
Debt Consolidation
Spend 10 minutes with NewRetirement's Retirement Calculator for more strategies and information for a secure retirement.