Refinancing a reverse mortgage should be done if it can access more of your home's equity, lower your current interest rate, or utilize one of the other net-tangible benefits to the borrower.
The basic rule of thumb as determined by HUD, known as the “refinance benefit factor,” is that 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:
Must have equity in your home
The "refinance benefit factor" rule must apply
Your interest rate or margin can improve
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.