Can I refinance a HECM loan to another HECM loan?

Yes, borrowers that have an existing Home Equity Conversion Mortgage (HECM) loan may refinance into a new loan.

Refinance transactions will be subject to the fixed and adjustable interest rate policy changes defined in 24 CFR Part 206 and Mortgagee Letters (ML) 09-21,14-11 and 14-21.

For more detailed information see: 
Mortgagee Letters 2014-21, 2014-11, and 2009-21 at:
Federal Register 24 CFR 206.27(b)(8) at:


All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.

Topic Number: KA-01344