Consumers typically refinance a mortgage in order to pay off their existing mortgage. Lenders will not approve a refinance transaction unless there is a net tangible benefit to the borrower.
The basic rule of thumb is if the borrower stands to gain five times the financial benefit from refinancing over the required closing cost, then it makes sense to consider a refinance. You should also consider refinancing if:
Did you know loan limits increased earlier this year? The loan limit for HECM reverse mortgage loans increased by $43,500, from $636,150 to $679,650.