Reverse Mortgage Refinance

Already Have a Reverse Mortgage? Refinancing May Unlock More.

A refinance replaces the existing loan with a new loan. It may change available proceeds, costs, rate structure or eligible borrower participation. Compare HECM and proprietary options under the new program’s requirements; benefits must justify the costs.

No required monthly principal-and-interest payments while applicable loan obligations are met. Borrowers remain responsible for applicable property taxes, homeowners insurance, other property charges, maintenance and occupancy requirements. The loan balance generally grows over time as interest and applicable fees accrue.

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What Is Reverse Refinancing?

Refinancing Your Reverse Mortgage — Explained Simply

A reverse mortgage refinance means replacing your existing reverse mortgage with a new Reverse Mortgage loan that may offer better terms. Like refinancing a traditional mortgage, the goal is to get better terms. Refinancing may increase available proceeds if the new program, current property value, applicable age factors, interest rates and other requirements support a higher borrowing amount. Eligible borrower participation depends on the new program’s requirements.

For it to make financial sense, the benefits — additional funds, lower rate, or spouse participation and applicable protections — need to clearly outweigh the closing costs of the new loan. We’ll run the numbers honestly with you to help you decide.

Common Reasons to Refinance

Why Homeowners Choose to Refinance Their Reverse Mortgage

There’s no one-size-fits-all answer. Here are the most common situations where a reverse refinance makes sense.

01

Access More Home Equity

If your home’s value has increased significantly since you took out the original loan, refinancing may allow you to access additional funds from that new equity.

02

Lower Your Interest Rate

Interest rates fluctuate over time. If rates have dropped, refinancing could reduce the rate at which your loan balance grows — meaning more equity preserved for your estate.

03

Review Spouse Participation and Protections.

A spouse may qualify as a borrower under the new program. HECM eligible non-borrowing spouse provisions and proprietary spouse protections have different conditions and should be reviewed before refinancing.

04

Switch Loan Type or Rate

Available rate and disbursement structures vary by program. Compare how a proposed change affects proceeds, costs, future access to funds and the loan balance.

05

Review Current Program Limits.

For HECMs, HUD’s maximum claim amount is one factor used to calculate available proceeds; it is not the amount every borrower can receive. Proprietary programs use their own limits and calculations.

06

Review Cash-Flow Options.

Depending on the selected program, refinancing may change available disbursement options. These are borrowed funds, and the costs and growing balance should be considered.

The Process

How Reverse Mortgage Refinancing Works

Refinancing a reverse mortgage is a structured process. Here’s exactly what to expect from start to finish.

Free Initial Review

We review your existing reverse mortgage terms — rate, current balance, and payout structure — alongside your home's current market value and your financial goals. This helps us determine whether refinancing would genuinely benefit you.

Cost-Benefit Analysis

We calculate the total closing costs of the new loan and compare them against the projected benefits — whether that's a lower rate, additional funds, or spouse participation and applicable protections. We'll give you a clear, written comparison.

Applicable Counseling

HECM refinancing generally requires HUD-approved counseling, although qualifying transactions may meet waiver conditions. Proprietary counseling requirements vary by program and applicable law.

Application & Appraisal

We submit the loan application. Your home is appraised as part of determining eligibility and available proceeds under the selected program. During this time, we handle all paperwork and keep you informed at every step.

Closing & Activation

The old Reverse Mortgage is paid off using proceeds from the new loan. Your new terms take effect. Available disbursement options depend on the selected program and rate structure.

Common Questions

Frequently Asked Questions

We want you to feel fully informed and confident. Here are the questions we hear most often.

1. How long after getting my original reverse mortgage can I refinance?

Refinance timing depends on the existing loan, the proposed program’s seasoning and benefit requirements, and lender guidelines. Review the applicable requirements before deciding when to refinance.

2. Will I need to go through counseling again?

HECM refinancing generally requires HUD-approved counseling, although qualifying transactions may meet waiver conditions. Proprietary counseling requirements vary by program and applicable law.

3. Can my spouse be added to a reverse mortgage through refinancing?

Possibly. Whether a spouse can join the new loan, and what protections apply, depends on age, eligibility, the selected program, loan documents and applicable law. Refinancing does not automatically create the same protections for every spouse.

4. What are the typical closing costs for a reverse refinance?

Costs may include origination, appraisal, title and other closing charges. FHA mortgage insurance premiums apply to HECMs; proprietary costs vary. Some costs may be financed when permitted by the selected program and transaction, which can reduce net proceeds and increase the loan balance. Compare total costs and benefits.

5. Will refinancing affect my Social Security or Medicare benefits?

Reverse mortgage proceeds — including from a refinance — are generally not considered income, so they typically do not affect Social Security or Medicare benefits.

However, if you receive:

Medicaid
Supplemental Security Income (SSI)

large lump-sum disbursements could affect your eligibility. It’s recommended to speak with a financial advisor or benefits counselor about your specific situation.

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