Paul & Nina did their first Home Equity Conversion Mortgage (Reverse Mortgage) with Kim. When looking at options, they wouldn’t think of calling anyone else. They received some flyers that made them think there was potential for a higher line of credit for emergencies than with their current HECM. After estimating their current home value, the estimated increase in line of credit was almost $50,000, well worth considering.
Do you have a reverse mortgage now and a significant increase in your home value?
The Financial Challenge:
The need for additional line of credit wasn’t for any specific item. They wanted to make sure there is as much buffer as possible if an emergency comes up. And, it’s important to have a slush fund. They had resolved the month-to-month shortfall in cash flow with the first HECM. Now they want any advantage available to make sure their retirement finances last.
A HECM to HECM refinance is possible. In fact, there are specific safety measures in place to ensure a benefit to the borrower that makes sense. This is one of many protections for reverse mortgage borrowers. With the appraisal, the home value was higher than estimated. This meant almost $75,000 additional line of credit. Now they are confident these additional funds available will help them with any financial surprises in the future.
What to Do Next:
If you currently have a reverse mortgage (Home Equity Conversion Mortgage or HECM) and have questions about the potential to refinance, give Kim a call. Then, whether it’s for better rates, more line of credit, to add a borrower if you got married, or for any other reason, Kim is happy to start a conversation. She will give you the information you need to know if a refinance of your reverse mortgage is right for you.