What is a HECM to HECM Refinance Loan?

As you know, a Reverse Mortgage is a great way to enjoy the equity in your home that you gained either from home appreciation or making monthly payments. For most folks, this is their reward for making 30 years of monthly payments.

A HECM to HECM refinance is a simple reset of an existing reverse mortgage where the previous Reverse Mortgage is paid off and a new Reverse Mortgage takes its place.* This becomes a valuable tool when home values rise.

Examples of what can be accomplished by refinancing a current reverse mortgage:

  • Pull out additional cash
  • Establish a line of credit
  • Increase an existing line of credit
  • Lower the interest rate
  • Lower the maximum lifetime cap
  • Eliminate monthly service fees
  • Add an eligible spouse who was not eligible before
  • Add an eligible family member
  • Have property taxes and homeowner’s insurance included in the new loan

The best part – the FHA benefits of your current reverse mortgage are retained.

*The new reverse mortgage requires additional underwriting qualifications and is subject to lender review. A borrower must be at least 62. The home must be the primary residence. Stay current on property taxes, homeowner’s insurance, and any HOA fees.


CA-DRE #02067986 | NMLS #1712822

This information is not intended to be a substitute for legal, tax or financial advice. Consult with a qualified attorney, accountant or financial advisor for additional legal or tax advice. These materials are not from HUD or FHA and were not approved by HUD or a government agency.

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