When Sinatra crooned “Love is lovelier the second time around”, you’re pretty sure he wasn’t referring to a home mortgage refinance. In fact, in the years leading up to your retirement from full-time employment (six years ago now, with your wife having retired a year prior to that), year earlier), your focus had been on “retiring” your home mortgage.
Post-retirement, having decided against following some friends into retirement community living and in favor of “aging in place”, you took out a reverse mortgage, using a portion of the equity line to restructure the home’s interior to improve navigability and safety. Other than those expenditures, you’ve not found the need to make withdrawals from your Line of Credit since then. Meanwhile, not only have you enjoyed “staying home”, you’ve noticed that real estate values in your neighborhood have continued to escalate. Although your own decision to stay put has not changed, you would like to find a way to take advantage of the increase in value of your home and are wondering whether refinancing the reverse mortgage loan is a viable move.
An appreciation in home values in your area is certainly reason enough to at least consider a HECM-to-HECM refinance. A new appraisal (sometimes the lender might require using the lower of two appraisals) would be needed, with the possible result being a significant increase in the Line of Credit available for your use (tax-free*) for years to come.
As you know, all reverse mortgages are non-recourse loans, meaning that, so long as you continue to occupy the home and keep up with the maintenance and insurance costs, no monthly mortgage payments** will ever be required. With no monthly mortgage payments** due, you will never be “upside down”; neither you nor your heirs will ever owe an amount greater than the value of the home itself.
It will be reassuring to have a larger line of credit as, on the one hand, a “buffer” against future inflated medical and daily living costs, and, on the other hand, a source to tap for travel and other luxuries.
Just as Sinatra used to croon, referring to love, you may well find that a reverse mortgage is lovelier the second time around!
https://mutualreverse.com/david-garrison
*Please consult a tax advisor. **Borrower must occupy home as primary residence and remain current on property taxes, homeowner’s insurance, the costs of home maintenance, and any HOA fees. David Garrison, NMLS ID 1595194. Mutual of Omaha Mortgage, Inc. dba Mutual of Omaha Reverse Mortgage, NMLS ID 1025894. 3131 Camino Del Rio N 1100, San Diego, CA 92108. Indiana-DFI Mortgage Lending License 43321. Michigan 1st Mortgage Broker/Lender/Servicer Registrant FR0022702. These materials are not from HUD or FHA and the document was not approved by HUD, FHA or any Government Agency. Subject to credit approval. For licensing information, go to: www.nmlsconsumeraccess.orgEqual Housing Lender