How much am I entitled to receive through a reverse mortgage?

How much am I entitled to receive through a reverse mortgage?  Read here to find out how much you can expect out of a reverse mortgage!!

A reverse mortgage is a loan which is available to senior citizens who are looking to liquidate a portion of their home’s equity, but do not want to sell their home.  Unlike a home equity line of credit, a reverse mortgage does not have to be repaid through monthly loan payments.  This article describes how much you are entitled to receive through a reverse mortgage is determined.

Value of Home

The first consideration which is taken to determine how much you are entitled to receive through a reverse mortgage is the value of the home.  Reverse mortgage proceeds are normally capped at around 80% of the home’s appraised value.  The maximum loan available for traditional reverse mortgages is $625,000.  If the home’s value far exceeds $625,000, a larger reverse mortgage called a proprietary reverse mortgage may be available.

Withdrawal Method

The next consideration which is taken to determine how much you are entitled to receive through a reverse mortgage is the withdrawal method.  Reverse mortgage proceeds can be either received in a lump sum payment, or through monthly disbursements.  Since there is less risk of running out of the reverse mortgage proceeds with monthly disbursements, the monthly disbursement withdrawal money will yield more proceeds from a reverse mortgage.

Age of Borrower

The last consideration which is taken to determine how much you are entitled to receive through a reverse mortgage is the age of the borrower.  As a general rule, the older the borrower is, the more they can receive from reverse mortgage proceeds.  This is because there is less of a chance of them spending all of the reverse mortgage proceeds before their death.

Related posts:

1. As Home Value Rises Who Is Entitled To The Money In A Reverse Mortgage?
2. How Is The Amount I Can Receive In A Reverse Mortgage Determined?
3. Is There A Choice How I Receive My Cash From A Reverse Mortgage?
4. What are the Qualifications to Receive a Reverse Mortgage?
5. How Can I Receive My Cash From My Hecm Reverse Mortgage?

This entry was posted on Wednesday, January 27th, 2010 at 7:10 pm and is filed under reverse mortgage. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.