Helping Neighbors In Need

For some borrowers refinancing to a new, lower, interest rate may be an option to avoid foreclosure, especially if they are still current on their payments. Your first contact for refinancing should be with your current mortgage holder to see if they are willing to “recast” your current loan with new terms. Recasting usually saves you from having to pay “closing” costs by simply having you sign a new note. Recasting loans is not a prevalent practice yet among lenders, but a few have done so and it is worth asking.

If your lender is unwilling (or unable) to recast your current loan, inquire about refinancing at a lower rate, a longer term, or both. If you begin to miss payments the refinancing option often becomes more difficult, so review these options early before you fall behind. You can also check with other lenders about refinancing, but keep in mind that they typically will want you to have some equity in the home before they will seriously consider your application.

See the "PRECAUTIONS" Tab for specific cautions about Refinancing

REVERSE MORTGAGES

A refinancing option often overlooked is the reverse mortgage. A reverse mortgage allows senior homeowners, with sufficient equity, to live for the rest of their lives in a home with no mortgage payments.

There's no monthly mortgage payment as long as the senior homeowner lives in the property.

The home can be mortgaged or owned free and clear, and there are no income or credit requirements to meet.

To be eligible you must be over sixty-two years of age and living in your home as your primary residence.

The amount you are eligible for depends on your age, interest rates and the value of your home.

Most reverse mortgages are set up so the home owner actually receives monthly payments.

The loans are government insured (HUD guarantees that as long as you have funds left in your line of credit, you will always have them available.)

You can find more information on reverse mortgages at: Reverse Mortgages for Seniors, and you can calculate how much you may qualify for using a reverse mortgage at: FHA Reverse Mortgages (HECMs) for Consumers.

Do Your Homework:

As a consumer, you need to be aware that with reverse mortgages you are required to pay not only an origination fee, but also the HUD Up-Front Mortgage Insurance. These fees can come out of the loan amount so you don’t have to come up with cash, but initial costs can be high. Never pay anyone for assistance in applying for a reverse mortgage; assistance can be obtained free by contacting us at Helping Neighbors in Need.

If you would like to speak with a Helping Neighbors in Need counselor

concerning your specific situation,

“CONTACT US”

Assistance is free and all discussions are held in strict confidence.