How much can i borrow from a reverse mortgage loan?
The amount of money you can get from a reverse mortgage depends on a few factors, including your age, the value of your home, and your other debts.
- Your age: The older you are, the more money you can get from a reverse mortgage. This is because the loan is based on your life expectancy.
- The value of your home: The more your home is worth, the more money you can get from a reverse mortgage. However, there is a maximum amount of money you can get, which is called the HECM limit. In 2023, the HECM limit is $980,700.
- Your other debts: If you have other debts, such as a mortgage or credit card debt, this will reduce the amount of money you can get from a reverse mortgage.
There are two main types of reverse mortgages:
- Home Equity Conversion Mortgage (HECM): The HECM is the most common type of reverse mortgage. It is insured by the Federal Housing Administration (FHA).
- Proprietary reverse mortgages: Proprietary reverse mortgages are not insured by the FHA. They are offered by private lenders.
If you are considering a reverse mortgage, it is important to talk to a reverse mortgage counselor. A counselor can help you understand the pros and cons of reverse mortgages and answer your questions.
You should also talk to a financial advisor to get personalized advice.