Asked by Richard  |  Submitted November 13, 2016

I have a reverse mortgage, not a conventional one. Can I get an extension on this under this program?

I have quite a bit more equity .

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  Answers  |  2

November 14, 2016

If you opted for a Line of Credit (LOC) then the undrawn available funds grows each year by about the same as the interest rate you are being charged. For example, you have a LOC with $50,000 available and your rate is 4.0%, the LOC will increase by about $2,000 this year.
If your home has simply appreciated and you want to tap into that additional equity to increase your monthly benefit or get more cash available to you, your option is to refinance the Reverse Mortgage. A Reverse Mortgage can be refinanced with a new Reverse Mortgage. You can also refinance with a traditional mortgage and pay off the Reverse Mortgage.
The home is yours like always and you choose what financing is placed on it.

$commenter.renderDisplayableName() | 09.20.20 @ 22:38


November 15, 2016

When you say "extension", I presume you're talking about increasing your loan size, since reverse mortgages don't have a defined term, and are only due when the last person on title no longer occupies the home. It's highly likely you won't be able to increase the loan amount, regardless of your home's increase in value. You can call your lender and ask, but most likely they'll tell you you'd have to redo your reverse mortgage to increase the loan size, and you'd incur very significant costs.

$commenter.renderDisplayableName() | 09.20.20 @ 22:38