Can A Reverse Mortgage Be Refinanced | HECM to HECM

Can A Reverse Mortgage Be Refinanced.

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For More Reverse Mortgage info, contact:
Shawn@LifeSourceMortgage.com
(949) 492-2252 x 704
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https://lifesourcemortgage.com/reverse-mortgage

Video transcript
Hey there, thanks for stopping by the LifeSource Mortgage YouTube channel.
My name is Shawn and today I’ll be talking about reverse mortgage.
More specifically, tackling the question “Can a Reverse Mortgage Be Refinanced?”
Uh, I’ll also talk a little bit about some of the perks in doing so that pertain to the closing costs.
With that said, let’s go ahead and dive in.
So, the very first rule in terms of redoing a reverse mortgage is you can’t do it any more often than once every 12 months.
So, let’s say you did a reverse mortgage 10 months ago. Well, you can’t redo it until another 2 months from now.
You have to do it no more often than once every 12 months. Ok, that’s a basic rule.
The next one (rule) is, they have rules in terms of how much money you get and the benefit, etc. The idea behind it is they don’t want people re-doing it if there is no tangible benefit to you as a homeowner.
So, the first rule in terms of that tangible benefit is that you have to get access to at least 5% more than what you already have. So lets say you have a $95,000 loan balance and $5000 available on your line of credit. You basically have a $100,000 reverse mortgage now in that case. Well, ya have to be able to get at least $105,000 which would be 5% more than that hundred thousand. Would it be worth doing if for $5000? Maybe, maybe not. That’s for you to decide. This is just a real simple example.
Ok, with that said, one of the other rules is that the amount of money you receive has to be 5 times more than the closing costs. Let’s just say the closing costs total, are $5000. Well, you have to be able to get access to at least $25,000 to make it work in terms of the net tangible benefit rule that FHA has on re-doing a reverse mortgage.
One of the perks about redoing a reverse mortgage is that, uh, you probably remember when you first got it that one of the biggest fees if the FHA up front mortgage insurance premium. At this point in time it’s basically 2% of the appraised value. Well, they prorate that so you don’t have to pay the entire thing the second time around. So, let’s say the last time you did it, the house appraised for $300,000. Your up front FHA mortgage insurance premium would have been $6000 depending on when you did it (this does change periodically). So, you already paid that $6000. Now, lets say it’s worth $400,000. What would happen is instead of paying 2% of that (which would be $8000) . Instead, you’d only pay $2000 in this example because you already paid $6000 the first time around. Obviously, this make it beneficial for you to not have to pay that bigger fee again.
I’d love to hear from you if you want to explore refinancing your reverse mortgage.
My contact info is down below in the description.

🔥Get Your Free Info Kit🔥
For More Reverse Mortgage info, contact:
Shawn@LifeSourceMortgage.com
(949) 492-2252 x 704

🔥🔥🔥🔥More Info🔥🔥🔥🔥
https://lifesourcemortgage.com/reverse-mortgage
#CanAreverseMortgageBeRefinanced #ReverseMortgage #HecmToHecm

www.LifeSourceMortgage.com Is not a lender or bank nor are we part of HUD / FHA. We are however a licensed mortgage broker In California, Colorado, and Idaho that specializes in reverse mortgages, fast closing purchase loans, and more. Anyone that inquires and requests more information may be contacted by the owner or employee of this site. LifeSource Mortgage, CA BRE#01869699. NMLS#321759, ID MBL#2080321759.