When people think about refinancing a mortgage, they typically think about the existing, conventional loan on their home. But a reverse mortgage — a financial product increasingly popular among older adults — also can be a candidate for refinancing.

First, some background. A reverse mortgage allows homeowners who are 62 or older to borrow against the equity in their property. The proceeds can be taken in the form of a monthly check, lump sum or line of credit. Hence, the word “reverse”: Instead of a homeowner making payments to a bank, for instance, the bank makes payments to the homeowner. The loan is repaid, with interest, when the borrower sells the house, moves or dies. While these loans have their drawbacks (including the potential for some steep fees), more families are using them as a way to produce income without having to dump assets like stocks in a volatile market. To date, sales volume this year is up about 20% from 2002, according to the National Reverse Mortgage Lenders Association, a trade group based in Washington.

Why refinance?

By taking advantage of four changes since you first acquired a reverse mortgage — in your age, the value of your home, interest rates and the size of loans insured by the Federal Housing Administration — you might be able to put more cash in your pocketREFINANCING IS AN OPTION WITH REVERSE MORTGAGE…. .

Related posts:

1. Federal Reverse Mortgages

2. Are reverse mortgages different than home equity loans?

3. What is a reverse mortgage?

4. Disadvantages of Reverse Mortgages

5. Cheap Mortgage Rages – Refinancing 30 year mortgages