By Tyler Plack
Tyler Plack is the Chief Executive Officer of South River Mortgage. He joined the company as a founding employee in 2017 and served as President before becoming CEO in 2026. Tyler holds an active FHA Direct Endorsement (DE) underwriting certification.
Refinancing replaces your existing loan with a new loan and adds costs.
Ask the lender to compare the current payoff, new loan costs, available proceeds, interest terms and ongoing obligations before deciding.
In this article7 sections
Compare the costs and interest terms
A lower rate may slow future interest accrual, but costs and further advances can increase the debt.
A lower rate does not by itself establish that refinancing benefits you.
What Is a Reverse Mortgage?
Before diving into the specifics of refinancing, let’s briefly review what a reverse mortgage is. A reverse mortgage allows homeowners aged 62 or older to access the equity in their homes without making monthly mortgage payments. Instead, the lender makes payments to the homeowner, and the loan is repaid when the homeowner sells the home, moves out, or passes away.
The most common type of reverse mortgage is the Home Equity Conversion Mortgage (HECM), which is insured by the Federal Housing Administration (FHA). There are also jumbo reverse mortgages for homes that exceed the FHA limits.
Check eligibility and counseling requirements
Ask the lender which eligibility and counseling requirements apply to the proposed loan.
For questions about your existing account or a payoff statement, contact your current servicer.
Check your eligibility
A few details to help us understand your options.
The Refinancing Process: Step-by-Step
Refinancing a reverse mortgage involves several steps:
1. Assess Your Financial Situation: Before refinancing, make sure you understand your financial needs and goals.
2. Find a Lender: Not all lenders offer reverse mortgage refinancing. It’s important to find one that specializes in reverse mortgage products.
3. Appraisal: Your lender will schedule an appraisal to determine your home’s current market value.
4. Review Terms and Fees: Make sure to review the new loan terms and associated fees. These could include new closing costs, administrative fees, and possibly higher loan balances.
5. Close the Loan: If you decide to proceed with refinancing, you’ll go through the closing process, which includes paying any fees and signing the new loan documents.
Questions to Ask Before Refinancing
Before moving forward, it helps to answer a few key questions:
- How much more money would I receive under a refinance?
- Are interest rates today better or worse than when I first applied?
- Do I want a different payout method, such as a line of credit?
- Will refinancing increase my long-term loan balance?
- How long do I plan to stay in my home?
These questions can help you determine whether refinancing moves you closer to your retirement goals.
Discuss a new-loan comparison
Frequently asked questions
How do I compare refinancing with my current loan?
Refinancing replaces your existing loan with a new loan and adds costs.
Ask the lender to compare the current payoff, new loan costs, available proceeds, interest terms and ongoing obligations before deciding.
A lower rate may slow future interest accrual, but costs and further advances can increase the debt.
A lower rate does not by itself establish that refinancing benefits you.
Which eligibility and counseling requirements apply?
Ask the lender which eligibility and counseling requirements apply to the proposed loan.
Who can help with my current account or payoff statement?
For questions about your existing account or a payoff statement, contact your current servicer.
Use our reverse mortgage calculator to explore your options, or call 844-230-6679. No pressure. No obligation.
