HECM to HECM Refinance
What is an HECM to HECM Refinance Loan
A HECM Reverse Mortgage is an ideal tool for seniors looking to enjoy all the benefits of a Reverse Mortgage such as no principal and interest payments for life. With a Reverse Mortgage the equity in the home makes the payments and the borrower is only responsible for typical property expenses such as taxes, insurance and HOAs. Having a Reverse Mortgage has many of the same benefits of owning a home free and clear but without the cost.
A HECM to HECM refinance is a simple reset of an existing Reverse Mortgage. This becomes an important tool when home values rise dramatically, there is a need to change the interest rate, or the homeowner would like to add another person to the mortgage such as a new spouse or qualifying family member.
Who is eligible for this loan?
Reverse Mortgages are reserved for families where at least one borrower is 62 years of age or older. With Reverse Mortgages there is a minimum equity requirement which is determined by the age of the borrowers, but other requirements such as income and credit are far more accomodating than standard forward mortgages; so even those who are on a fixed income or who may have gone through a bankruptcy or foreclosure in recent years may still qualify.
What are the benefits of this loan?
- Access additional equity gained through appreciation to consolidate Debts, establish a line of credit, or pull out cash
- Add additional borrowers to the Reverse Mortgage
- Make changes to the interest rate such as going from an adjustable to a fixed rate or locking in a lower rate
- Retain all benefits of previous Reverse Mortgage
- Establish monthly payments from the bank to supplement a fixed income
- Reduced income qualifying requirements
- Minimal Credit requirements
- No Mortgage payments as long as the home owner lives in the home