Have you been considering refinancing your reverse mortgage? At South River Mortgage we offer older Americans that are 62 years or older the option to refinance on their reverse mortgage, so they can enjoy an even more comfortable retirement. Now is the time to refinance your reverse mortgage if you qualify.
Let’s look at several qualifications you must meet. Up until 2020, the minimum time to wait to refinance was 18 months. Currently, the minimum waiting period is just 12 months in light of the pandemic.
If it has been past that allotted time frame, then it is important to see if refinancing is beneficial for you. The National Reverse Mortgage Lender Association has instituted a benefit test to verify that borrowers will benefit from a reverse mortgage refinance. The main guidelines you must meet are:
· The increase in principal amount must equal to or more than five times the loan closing costs
· Loan proceeds must greater than or equal to 5% of the amount being refinanced
We understand that you want to make the best out of your “golden years”. South River Mortgage is here to help you. Don’t wait to refinance your reverse mortgage because interest rates are still low. Locking into a low interest rate means that your balance grows at a slower rate, preserving more equity over time.
Even More Proceeds
Another reason why you shouldn’t wait to refinance your reverse mortgage is because home values are at an all-time high. Refinancing will increase the amount of money you receive if your home has appreciated. Don’t wait when you can unlock a greater amount of tax-free cash from the equity in your home.
Along those same lines, you can also be entitled to a greater percentage of your home’s value or principal limit. How long has it been since you closed on a reverse mortgage? The principal limit is determined by your age. The older you are, the more proceeds are made available to you. Let us help you refinance, so you can access a greater amount of money from your home.
Now is a fantastic time to refinance because interest rates are low, and home values are at an all-time high. Before the market changes get in touch with one of our mortgage professionals at South River Mortgage. We will work with you to make sure you know all your options when it comes to your reverse mortgage.