• Question
  • Which is better - reverse or refinance mortgage?

    Asked by a 88 year old man from Gardena, CA on 7/17/2012

    Which is better - reverse or refinance mortgage?

  • Categories: Housing, Tapping home equity


  • Editorial 


    San Francisco, CA

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  • This is a great question -- one faced by many retirees.

    The answer of course all depends on your needs and goals.

    Typically a Reverse Mortgage will cost more than refinancing but will enable you to access quite a bit more money and completely eliminate your monthly mortgage payment.
    --> https://www.newretirement.com/reverse-mortgage-marketplace.aspx

    Refinancing your mortgage can lower your interest rate and lower monthly payments and sometimes can enable you to also access money through a home equity line of credit, but it can be difficult to qualify -- especially if you are retired without an income stream.
    --> http://www.newretirement.com/Services/Mortgage_Refinancing_Calculator.aspx

    Downsizing is another option that many retirees find appealing. Downsizing enables you to cash in some equity on your home and/or lower mortgage payments. It also enables you to potentially relocate into a home that may better suit your retirement lifestyle.
    --> http://www.newretirement.com/Services/Relocation.aspx

    I would encourage you to explore all options with lenders in order to get a better understanding of what each opportunity will really mean to you and your retirement -- both now and as you age.

  • Login to rate this answer:   Answered on 7/17/2012
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.