More Line of Credit for Emergencies: Is it time to refinance?
A HECM-to-HECM refinance can increase your emergency line of credit if your home value has grown. See how Paul and Nina added $75,000 to their safety net.
The Situation: Making a Good Plan Even Better
Paul and Nina were already fans of the reverse mortgage. They had completed their first Home Equity Conversion Mortgage (HECM) with Kim Dodge and Cheryl Teigen years ago, which had successfully fixed their monthly cash-flow chores.
However, they noticed that home values in their area had increased significantly. After seeing some information in the mail, they wondered: Could our increased home value give us a larger "safety net" for the future?
They wouldn't dream of calling anyone but Kim and Cheryl to find out.
The Financial Challenge: Building a Bigger Buffer
Paul and Nina didn't have a specific bill to pay. Instead, they wanted to maximize their "slush fund." They wanted the largest possible buffer to ensure that no matter what "surprises" life threw at them, their retirement finances would stay rock-solid.
After a quick estimate, it looked like a refinance could potentially increase their available line of credit by $50,000. For Paul and Nina, that was an advantage well worth considering.
The Solution: The HECM-to-HECM Refinance
Did you know you can refinance a reverse mortgage? It is actually a very common strategy when home values rise.
The best part? The FHA has specific safety measures in place for these types of loans. A refinance is only allowed if it provides a significant, documented benefit to the homeowner. This is one of the many protections built into the program to put the borrower first.
When the appraisal came back, the news was even better than expected. Paul and Nina's home value had jumped so much that they gained almost $75,000 in additional line of credit. Now, they can breathe easy knowing they are prepared for whatever the future holds.
What to Do Next
If you currently have a reverse mortgage and have seen your home value go up, it may be time to see if a refinance is right for you. Whether you want a lower rate, a larger line of credit, or need to add a spouse to the loan, Kim and Cheryl are here to help.
We provide the clear information you need to decide if a change makes sense for your goals.
Contact Kim Dodge and Cheryl Teigen:
Telephone or Text: (503) 595-1600
Email: Hello@KimDodgeReverse.com
Licensed in Oregon & Washington, Kim Dodge, Branch Manager | NMLS 186099 | Cheryl Teigen, Loan Officer | NMLS 2089085 | Kim Dodge Reverse Mortgage, a dba of Zyng Mortgage, Inc. | NMLS 76801 | Equal Housing Opportunity | ConsumerAccess.org