HECM Reverse Mortgage for Refinance

What is a HECM Reverse Mortgage for Refinance Loan?

A HECM Reverse Mortgage is a Retirement tool designed to help seniors live with greater financial freedom in retirement by giving them access to the equity they’ve built up in their home in order to eliminate monthly mortgage payments, consolidate debts, open a line of credit, or receive a monthly supplemental income payment. Throughout the life of a forward mortgage, payments are made toward principal and interest gradually lowering the balance of the loan and building equity. In Utah, a Reverse Mortgage, also known as a Home Equity Conversion Mortgage (HECM), allows the homeowner to access the equity they have built in their home. For Utah residents, an HECM refinance is an ideal way for seniors to enjoy all the benefits of a reverse mortgage such as no principal and interest payments for life. With a reverse mortgage the equity in the home makes the payments and the borrower is only responsible for typical property expenses such as taxes, insurance and HOAs. Having a reverse mortgage has many of the same benefits of owning a home free and clear, but without the cost.

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Who is eligible for an HECM refinance?

In Utah, Reverse Mortgages are reserved for families where at least one borrower is 62 years of age or older. In order to receive an HECM refinance there is a minimum equity requirement which is determined by the age of the borrowers, but other requirements such as income and credit are far more accommodating than standard forward mortgages; so even those who are on a fixed income or who may have gone through a bankruptcy or foreclosure in recent years may still qualify.

What are the benefits of this loan?

  • Access home equity to consolidate Debts, establish a line of credit, or pull out cash
  • Establish monthly payments from the bank to supplement a fixed income
  • Reduced income qualifying requirements
  • Minimal credit requirements
  • No Mortgage payments as long as the homeowner lives in the home
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What is an HECM to HECM Refinance Loan?

Reverse mortgages are an excellent option for Utah seniors who want to enjoy the benefits of not having to make mortgage payments. A HECM allows the homeowner to enjoy retirement with increased living costs by using the equity they have built up in their home over the years. Reverse Mortgages don’t affect the borrower’s ability to pay taxes, insurance, and homeowners’ association fees.

HECM to HECM refinancing – who is eligible?

For people 62 and older, Reverse Mortgages are also known as Home Equity Conversion Mortgages (HECM). The age of the youngest borrower determines the minimum equity requirement for reverse mortgages. A HECM in Utah is more lenient than a traditional forward mortgage in terms of income and credit requirements. Utah is one of the few states where borrowers with Reverse Mortgages are allowed to refinance their existing HECMs into HECMs.

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How does this loan benefit you?

  • Utilize the additional equity gained through appreciation to consolidate debt, establish a line of credit, or withdraw cash
  • The Reverse Mortgage may be extended to additional borrowers
  • If you want to change your interest rate, you can either go to a fixed rate or lock in a lower rate
  • The previous reverse mortgage benefits continue to apply
  • Create a monthly income supplement from the bank
  • Having a reduced income requirement
  • Requirements for credit are minimal
  • The homeowner does not have to make mortgage payments for as long as they live in the home
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169 W 2710 S Cir Suite 202 B St. George, UT, 84790, US,

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jbundy@mutualmortgage.com

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