Tapping into that additional equity may be beneficial for anyone who may require access to additional funds to meet more financial obligations in retirement. In addition to a change in interest rates or PLFs as possible motivating factors, you may find it beneficial to refinance your reverse mortgage if your home value has notably increased, such as due to market conditions, or even after renovations that may have added value to the property. This is because HECM reverse mortgages are only available to Americans that are at least 62 years of age. In terms of refinancing reverse mortgages, the motivation for doing so can come from a number of places that tend to be a bit more specialized. Refinancing conventional, forward mortgages is a very common practice that some borrowers utilize in order to try and create more favorable terms as they work to pay off their home loan. Refinancing can come with several possible benefits, including increasing the amount of money that you’re able to borrow from the loan, along with taking into account other factors that may have shifted into your favor since the original loan was first created, particularly in terms of interest rates and/or principal limit factors ( PLFs). The short answer to this is yes, it is possible to refinance a HECM reverse mortgage. You can find a list of our lender members by clicking here.For some existing reverse mortgage borrowers – particularly borrowers who have a Home Equity Conversion Mortgage ( HECM) sponsored by the Federal Housing Administration (FHA) – a number of factors may lead them to ask if it is both possible and/or beneficial to potentially refinance their existing loan into an offering with more advantageous terms. The National Reverse Mortgage Lenders Association (NRMLA) is not a licensed lender or broker and does not make or offer loans. Upon choosing a lender and applying for a HECM, the consumer will receive from the loan originator additional required cost of credit disclosures providing further explanations of the costs and terms of the reverse mortgages offered by that originator and/or chosen by the consumer. You might find reverse mortgage originators that offer higher or lower margins and various credits on lender fees or closing costs. The lender will add a “margin” to the index to determine the rate of interest actually being charged. The “index” (our calculator uses the Monthly Adjusted LIBOR, which is a common index used in the market) will adjust regularly, as market interest rates move up or down. Interest rates on variable rate HECM loans are comprised of two components, an index and a margin. Lenders might also offer different options on interest rates and fees. Note these closing costs can and do vary by geographic area or region.

The rates and fees shown are not the actual rates you might be offered by any particular lender, but generally represent rates that may be available in the market today, with the maximum origination fee allowable under HUD rules reflected for illustrative purposes only, along with an estimated FHA Mortgage Insurance Premium for a loan based upon the home value provided, and estimated recording fees and taxes, and other types of closing costs typically associated with a reverse mortgage loan.

It is intended to give users a general idea of approximate costs, fees and available loan proceeds under the FHA Home Equity Conversion Mortgage (HECM) program. Please note: This calculator is provided for illustrative purposes only.

Nrmla reverse mortgage calculator