Retired couple looking at finances

How to Refinance Your Home If You’re a Retiree: Reverse Mortgages

If you’ve ever wondered how to refinance your home or when to refinance mortgages as a retiree, a reverse mortgage from Quontic could help eliminate your monthly payments and tap into your home’s equity.

Retirees, or seniors and those approaching retirement, often wonder if refinancing a home is the right move for them. In Part 1 of our blog, all about cash-out refis, we covered how Quontic’s mortgage products give borrowers the ability to take advantage of the equity that has developed in their home. If you’re curious about your other refinance options, and want to cut out mortgage payments entirely, we’ve got something for you.

Enter the reverse mortgage or HECM (Home Equity Conversion Mortgage). This refinance option is ideal for retirees with equity in their home who would like to tap into it for to consolidate debt, obtain some cash, pay for children’s education, etc., but do not feel comfortable making mortgage payments for the rest of their lives. HECM’s enable a senior homeowner to borrow money to pay off their existing mortgage and take cash out, but it does not require any mortgage payments to be made so long as the borrower remains in the home as their primary residence. Instead of making payments, the interest that is charged by the lender simply accrues and is paid back when the homeowner leaves the home and it is sold. 

One of the greatest benefits this product provides you is the ability to keep your lifestyle. By getting a reverse mortgage, you’re allowing yourself the opportunity to remain in your own home, as opposed to a retirement home or relocating after 60 years.

For example, I’ve seen this situation about a thousand times: A husband passes away, and there’s an $80k mortgage remaining on a home worth $300k, left to the widow. What do you do? 

With a reverse mortgage, Quontic will pay off the remaining $80k mortgage, and provide the widow with access to a portion of the remaining $220k in home equity. That’s that. Don’t fall for the misconceptions. 

  • The government does not own the house.
  • The family keeps their inheritance.
  • We never change the title to the property. 


Listen to your own family and look at your bills to see if this product is right for you. Remember that you can stop the loan process at any time. If used properly, a reverse mortgage can make a huge difference in your retirement. It can change the life of a family. It can give peace of mind, and the chance to age safely in your own house, which is even more sought after these days because of COVID. 

A reverse mortgage is a great option for retirees who would like to eliminate their mortgage payment altogether and obtain cash for a better retirement. This is all possible if you have sufficient equity in your home. All you need to get started is a mortgage professional’s help!

So, now that you’ve done the research on how to refinance—what’s next?

The best way for retirees to identify a program that works for them is to align themselves with a bank that spends their time lending in the senior community, like Quontic. We’re a CDFI, otherwise known as a Community Development Financial Institution, with a commitment to our mission. CDFI is a special designation given by the U.S. Department of Treasury based upon the historical servicing of a community. Serving seniors and low-to-moderate income individuals is a cornerstone of that mission. 

If you choose a HECM, all costs can be rolled into the mortgage so there is no out of pocket cash required from the borrower. If you choose a cash-out refinance, Quontic has options where we can pay for or waive many of the closing costs through a grant program that we offer. If you live within a certain low-moderate income census tract, or if your income is below 80% of the area’s median income, Quontic can help with the costs. So here in New York, the average applicant spends approximately 5% of the loan amount on their closing expenses when they refinance. It’s a huge help having Quontic pick up a portion of that.

In short, refinancing via either a cash-out refi or a reverse mortgage (HECM) can be a great way to stay in your home and have a better life. Affordable homeownership keeps families and communities intact, reduces stress, provides money for kid’s education or home improvements, and even saves marriages. These are some of the things that Quontic does as an adaptive digital bank, which enables us to meet the needs of the community that we serve. 

If you’re interested in utilizing Quontic’s cash-out refinance or HECM programs, please reach out to us through our site. Contact our refi experts Darrin Q. English here and Frank Melia here.

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