It’s no surprise that someone may want to know how much money they will get from a loan before they apply for one. Unfortunately, we can’t give you an exact number here. Why? Because there are a few factors that play a role in the amount of money you can get from a reverse mortgage. The amount is based on the age of the youngest borrower, current interest rates, and the value of the home. Since everyone reading this post is a different age and has a different home value, no two answers will be the same. We can help you figure it out though.
How Much Do You Get from a Reverse Mortgage?
Even with the criteria listed above, it can be hard to figure out how much you’ll get. There are other factors too.
For one, if you have an existing mortgage, you’ll receive less money to use in retirement. That’s because the money will first go towards paying off your existing mortgage. So make sure you take that into account when you are doing your calculations. And, always keep in mind, you are still responsible for paying property taxes, homeowners insurance, and home maintenance costs. While some reverse mortgage borrowers pay this on their own, some have a portion of their proceeds set aside to pay for these financial obligations. If you are one of the borrowers that does this, that may also affect how much you receive.
No matter your age, home value, or interest rate, there is one constant for everyone. With a federally insured reverse mortgage, the most money a person can borrow is $679,650.
One Reverse Mortgage Calculator
To get a good, customized estimate of how much money you may access from this loan, input your information into our reverse mortgage calculator. The calculator does not require you to give any personal information in order to calculate and delivery a result. The only information you need to supply is the estimated value of your home, your current mortgage balance, your zip code, and your age. You do not need to give your name or any contact information to get a result.
While the calculator gives a good estimate, you may get a better estimate by talking to a licensed specialist. They can have a conversation with you and provide a more personalized estimate based on your individual needs, goals, and circumstances. They can also see if you qualify for the loan.
Getting Your Reverse Mortgage Proceeds
Depending on what type of reverse mortgage you choose, you can get your proceeds a few different ways. If you have a fixed rate loan, you will get your proceeds in one lump sum. However, if you get an adjustable rate loan, you can choose to get your proceeds in a lump sum payment, monthly distributions, a line of credit, or any combination of the three.
Using Your Reverse Mortgage Proceeds
No matter how much you get from your reverse mortgage, you can use the money for anything. Do you have an immediate need, like a home repair or debt consolidation? Do you want to take a trip, build an emergency fund, or increase your monthly cashflow savings? You can do any of these – or anything else. However, we do recommend using your proceeds responsibly.
There is no obligation to move forward when you get an estimate of how much money you can get from a reverse mortgage. We recommend speaking to a financial advisor before you decide to move forward with the loan.