A Reverse Mortgage for seniors is for after 62 years of age. A Reverse Mortgage is a loan available to seniors 62 and older in the United States that is used to release the home equity in the property as one lump sum or multiple payments.

The homeowner's obligation to repay the loan is deferred until the owner dies, the home is sold, or the owner leaves (e.g., into aged care).

A reverse mortgage is analogous to an annuity where the principal and interest are paid with homeowner's equity.

The purpose of Refinancing is to reduce your interest rate to a lower rate and to extend the length of payments over a longer period of time and also is commonly used to profit from the transaction to pay off other debts. Homeowners refinance to reduce their payment obligations to raise cash for other investments or purposes.

Refinancing can change your monthly payments owed on the loan either by changing the loan's interest rate or by altering the term to maturity of the loan.

More favourable lending conditions may reduce overall borrowing costs. In most cases refinancing is used in to improve overall cash flow.

Another use of refinancing is to reduce the risk associated with an existing loan. Interest rates on adjustable-rate loans and mortgages shift up and down based on the movements of the various indices used to calculate them.