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5 facts about refinancing a reverse mortgage loan

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You may need loan counseling again
You may need loan counseling again | Hero Images/Getty Images

You may need loan counseling again

As was the case the first time you took out a reverse mortgage loan, you may be required to go through loan counseling with a housing counselor trained by the Department of Housing and Urban Development.

The counseling is available face-to-face or by phone and typically costs about $125, though it may be offered free of charge to lower-income borrowers.

In some instances, refinancers are allowed to skip this step. But that can be a bad idea. The rules governing reverse mortgage loans are intricate, exacting and constantly changing. Even lenders and industry experts find it challenging to stay current.

The counseling session is a good opportunity to get briefed on what's new since you got your first loan, says Brian Sullivan, a HUD spokesman. It's also a chance to ask lots of questions and run the details of your new deal past a neutral third party.

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