- Question
Can you come back a second time?
Asked by someone from Philadelphia, PA on 4/7/2013What if the housing market was severely depressed when you got your reverse mortgage? Instead of your house being worth $200,000 as it once was, it was worth only 120,000; hence, your reverse mortgage loan turned out to be very low. Two years go by and the housing market improves and your house is now worth more. Can you go back to the bank that gave you your reverse mortgage and say, "Since my house is worth more now, can I have more money?" Or is that unheard of? Thank you.
- Categories: Paying Off Debt, Retirement Planning, Mortgage Refinancing, Reverse Mortgages, Housing, Refinancing
Answers
Toll Free 866-477-0404
Yes, you can refinance a Reverse Mortgage with another Reverse Mortgage if there's enough equity. When a Reverse Mortgage is refinanced with another Reverse Mortgage, the Mortgage Insurance premium is prorated, so the fees could be less the second time.
You're welcome. You'll want to go to a bank that specializes in Reverse Mortgages. In the past, Bank of America, Wells Fargo and Metlife had Reverse Mortgage divisions, but they stopped offering the program last year. I work in the Reverse Mortgage division of Proficio Bank, and we offer the program in every State except Hawaii. My website is www.RaymondDenton.com, if you'd like to visit.
**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.
