Like standard mortgages, reverse mortgages can be refinanced, which can make sense under certain circumstances.  Refinancing a reverse mortgage essentially means that you're replacing your existing reverse mortgage with a new one.   With historically low interest rates and reduced mortgage insurance premium, now may be the time to grab more of the equity from your home.


  1. Increased Credit Limit and Equity - with today's lower interest rates and mortgage insurance rates, refinancing could allow to you tap into more of the equity in your home.  By reducing the amount of monthly interest and insurance, the bank can give you a higher line of credit because less equity in your home will go towards the monthly loan expenses.
  2. Lower Interest Rates - today's interest rates are at all-time lows.  Because of this, less of your home's equity will go towards monthly loan costs.  This puts more of the available equity in your pocket!
  3. Higher Home Values - in recent times, the real estate market has seen improved home values.  Now may be the time to tap in to the additional equity in your home.
  4. Secure a FIXED rate - today's fixed rates may be lower than your current adjustable rate.  Now may be a good time to "lock in" a better interest rate.
  5. Add or Protect a Spouse - is a common reason for refinancing a reverse mortgage, since this act can provide the spouse with continued income.  Previous rules didn't allow a spouse under 62 to be on the loan, so now may be the time to add them.  This strategy will allow one spouse to continue living in the home and to receive income from the reverse mortgage even if the borrower dies first or has to move into a nursing home before the spouse. 

FOR YOUR PROTECTON - A HECM-to-HECM Refinance must provide a “Bona Fide Advantage”

To help borrowers decide if a reverse mortgage refinance makes sense, HUD created guidelines to protect homeowners.  These HUD guidelines ensure that doing a reverse mortgage refinance can provide the borrower with a “Bona Fide Advantage” as it relates to their loan proceeds, closing costs and other product details.   You may also visit for information on HECM-to-HECM Refinance guidelines.