Reverse Mortgage Loan Blog

DEAR BOB: My wife and I took out a reverse mortgage about four years ago. It provides us with extra monthly income so we can live very comfortably. Before that, we often could barely pay expenses without dipping into our meager savings. Recently, our reverse-mortgage company asked if we would like to “refinance” our reverse mortgage because our home has gone up in market value by about $125,000. However, we would have to pay the up-front fees all over again. Is this a good idea? We are now 83 and 77. –John and Ida W.

DEAR JOHN AND IDA: The answer depends how long you want to stay in your home. If your answer is at least five years, then it might be wise to refinance your reverse mortgage to increase your borrowing power since your home has appreciated in market value.

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