Ask The Expert: Since I took out a reverse mortgage, the worth of my house has gone down. Will the loan be adjusted accordingly?

posted by: Mark Schmidt Reverse Mortgage Specialist (773) 504-9633

No. Your reverse mortgage proceeds are based on the value of your home at the beginning of the loan. If the property goes down in value afterward, there is no downward adjustment to your loan proceeds. Likewise, if the property value goes up, there is no upward adjustment unless you refinance your reverse mortgage with another reverse mortgage using the higher value. This means more closing costs so it often does not make sense to refinance a reverse mortgage.

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