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Michael G. Branson, CEO of All Reverse Mortgage, Inc., and moderator of ARLO™, has 45 years of experience in mortgage banking, with the past 20 years devoted exclusively to reverse mortgages. A Forbes Real Estate Council member, he developed the industry's first fixed-rate jumbo reverse mortgage and has been featured in Forbes, Kiplinger, the LA Times, and Yahoo Finance. (License: NMLS# 14040) |
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Cliff Auerswald, President of All Reverse Mortgage, Inc., and co-creator of ARLO™ — the industry's first real-time reverse mortgage pricing engine — has 27 years of experience in mortgage banking, with 20+ years focused exclusively on reverse mortgages. A recognized expert in reverse mortgage technology and consumer education, he has been featured in Kiplinger, Yahoo Finance, Realtor.com, and HousingWire. (License: NMLS# 14041) |
Michael G. Branson
Edited by 
Cliff Auerswald
Yes, you can switch lenders, but the only way to do it is by refinancing into a new reverse mortgage. There’s no “transfer” process as you might see with other types of loans. You start a brand-new reverse mortgage, and the new lender pays off your current one.
Whether it’s a good idea depends on what you’re trying to accomplish.
When refinancing can make sense
A refinance may be worth looking at if:
Interest rates drop
Your home value has increased
You’re eligible for a higher principal limit
You want access to more funds or a lower margin
In these situations, we often help homeowners refinance into better terms because the numbers genuinely improve.
When refinancing usually doesn’t help
Right now, interest rates are higher than they were a few years ago. In that kind of market, refinancing usually works against you:
Higher closing costs
A higher starting loan balance
Similar or worse interest rates
Little or no extra funds available
You’d be paying to refinance without gaining much in return.
What you can do without switching lenders
If the main issue is watching interest add up, there are two simple ways to slow it down:
Make voluntary payments toward interest or principal. Even small payments help reduce compounding.
Reduce your monthly draws if you’re taking scheduled payments. Using less means less interest accrues.
Both options let you control the balance without giving up the protections of the reverse mortgage.
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