What is a Reverse Mortgage?
If you are over 62 and a home owner you may qualify for a reverse mortgage.
This a type of mortgage where loan amount is not re-paid as long as you living in the home, only paid when borrower dies, or if the house is sold , or move out of the house.
Before you thinking of a reverse mortgage you need to check the Pros & the Cons There are many advantages and disadvantages. A reverse mortgage is similar to a regular mortgage. Since they are both loans based on houses. However here the debt is not re-paid until the owner dies, move out or sell the house.
Consult with a Government certified consular before you make next move.
Refinancing Your Mortgage Loan
By re-financing mortgage could reduce the principle and interest portions of your mortgage payment. When refinancing, extending your current terms may be a disadvantage to re-financing. You need to familiarize yourself its interest rate, terms before compare shopping for a new loan.
Home owners may consider reducing their mortgage, when you re-finance you get a new loan pay of the balance on your existing loan. Good thing to re-finance is mortgage rate has come down significantly, if you have an adjustable rate you can move to a fixed rate.
The Disadvantage of Refinancing
The disadvantage is paying points, fees, closing costs can reduce into any saving you will gain by refinancing, and you may have to pay penalties for paying off your existing mortgage
There is cost associated with re-financing. This can be an application fee, credit check, an appraisal, title insurance or title search, origination fee , points , these cost can add of this amount to be borrowed
Before you make a decision you should take into account all factors I mentioned.