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Refinancing Reverse Mortgage

Posted on: 02nd Sep, 2010 08:29 am
hello:

i am new...wish i knew this forum before getting my reverse mortgage!

my home was appraised at $150,000 and received $55,000 as the reverse mortgage based on this value. i also had to get private second mortgage in the amount of $25,000 which i used to restore my home and now it is appraised at $200,000. i need to borrow again to pay this second mortgage because it was for one year and the due time is coming up.

i wanted to know if i can refinance the whole thing, the reverse mortgage + second mortgage + some extra cash as one mortgage from a bank or trust company for $125,000?

i didn't know that i couldn't rent the extra self contained unit i have if i had the reverse mortgage; it is staying empty which could bring in $1,000 in rental income i need badly .
Hi lmcmliv,

You can refinance both the loans into one reverse mortgage and use the cash out that you receive to pay off the second loan. As you've taken out a reverse mortgage, you won't be able to rent a portion of your property. If you do so, it will be considered as fraudulent.

Thanks
Posted on: 03rd Sep, 2010 02:30 am
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