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Refinancing Basics
Reasons to Refinance
Refinancing to Save Money
Refinancing to Get Cash
Rule of Thumb for When to Refinance
Types of Refinances
Are Home Equity Loans the Same as Mortgage Refinancing?
Comparing Cash-Out, Rate and Term Refinancing and Home Equity Loans
What to Consider Before Refinancing
Requirements, Costs and Time Involved for Refinancing
CHOOSING THE RIGHT FINANCING
Mortgage Lenders
Eight Comparison Points to Find the Best Loan Value
Understanding Fixed Rate Mortgages
Understanding Adjustable Rate Mortgages (ARM)
The Difference Between a Fixed and Adjustable Rate Mortgage
Best Choice for You—ARM or Fixed-Rate Mortgage
HOW YOUR CREDIT AFFECTS MORTGAGE REFINANCING
Your Credit Score
Obtaining Your Credit Report and/or Score
Credit Bureaus and Your Financial Information
What the Credit Numbers Mean when Refinancing
Your Finances
What Lenders Want
Your Credit is Affected by Major Life Changes
How Lenders Determine How Much Mortgage You Qualify For
Concerns When Tapping Equity and Consolidating Debt
If You Have a Blemished Credit Report
Subprime Mortgages
THE REFINANCING PROCESS
Refinancing is a Brand New Mortgage
Applying for a Mortgage Refinance Loan
Low Doc Programs
Refinancing Costs
Closing Cost Estimates
Points — What are They and What Do They Cost?
What Happens After the Application?
Processing of the Loan
The Loan Closing
Three Day Right of Rescission
Reasons a Loan May Not Be Approved
Tips for Bringing a Loan To a Successful Closing
REVERSE MORTGAGE
Reverse Mortgage for Retirement Income
What Happens to the Home?
Who is Eligible for a Reverse Loan?
Three Types of Reverse Mortgages
Reverse Loan Features
Getting the Best Reverse Mortgage
Reverse Mortgage Fees
Reverse Mortgage Payment Plans
Reverse Mortgage Interest Rate Adjustments
In Considering a Reverse Mortgage Be Aware
GLOSSARY OF MORTGAGE REFINIANCING TERMS
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Reverse Mortgage Interest Rate Adjustments

All reverse mortgages carry adjustable interest rates, but with some programs you can choose a rate that adjusts annually or monthly.

  • Annual rate adjustments are usually capped at two points per year and five points over the life of the loan. On the other hand, they offer a lower maximum loan amount.
  • Monthly rate adjustments offer a larger maximum loan amount, but they usually have no annual adjustment cap, and instead are usually capped at 10-12 points over the life of the loan.

If you choose to receive your reverse funds as monthly cash advances, note that these rate adjustments will not change the amount you receive each month. They only affect the amount of interest that is charged on the total loan balance.

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