How much money can you get from Reverse Mortgage?
How Much Money Can You Get from Reverse Mortgage?
This depends on factors like:
- Your age – the older you are, the more money you can borrow.
- The current interest rate – if the prevailing interest rates are lower, you are eligible for higher loans.
- The appraised value of your home – the more valuable your home, the more money you get out of it.
|What is the Reverse Mortgage Maximum Withdrawal Limit?
Around 80% of your equity interest. The government sets annual upper limits on your total borrowing based on where you live. In 2007, the limit was between $200,160 and $362,790.
How Do You Repay Reverse Mortgage?
Under normal circumstances, when you no longer use your home as your primary residence or you want to sell your home, you will have to make a repayment of your Reverse mortgage loan, with interest and other fees. You or your heirs will get the remaining equity in your home, if any. Your debt will usually not be passed along to your estate or your heirs.
What Happens If You Outlive the Loan?
The lender cannot take away your home under any circumstances as long as you or one of the borrowers continues to live in the house. You only need to ensure that you keep the taxes and insurance current. You can never owe more than your home’s value. However, please clarify the terms of the Reverse Mortgage from your provider.