- What is a Reverse Mortgage
- Will I Qualify For Money
- Why is Counseling Required
- What Are The Requirements
- Reverse Mortgage Payments
- When Do I Repay the Loan
- How Can I Use the Money
- Reverse Mortgage Costs
- Property Taxes and Insurance
- Why Not Take an Equity Loan
Call Joe Rizzo For The Facts.
Toll Free 800-681-3340
How Much Money does my Home Qualify for?
The amount of money an individual qualifies for will depend on a number of factors. These qualifying factors include the age of the youngest borrower that will remain on title, the exact type of a Reverse Mortgage that you choose, the value of your house, current loan balance, if any, and current interest rates. Generally, the older you are the more you will qualify for, and the younger you are the less you qualify for. In order to qualify the youngest borrower must be at least 62 years old. The amount that the borrower qualifies for is based off of the age of the youngest borrower. So, if one borrower is significantly older than the other borrower, and they are both planning to remain on title, the amount would be based on the age of the youngest borrower on title.
What types of Reverse Mortgages are there?
There is more than one type of Reverse Mortgage to choose from. There are two types of loans that FHA offers, each one offers the benefits of never making another mortgage payment and a tax-free income, but they both have different features. Fannie Mae also offers a Reverse Mortgage that has different benefits and features. Finally, there are several types of Jumbo Reverse Mortgages generally used by people whose homes far exceed their county's lending limit.
Why is your home's value important to the Reverse Mortgage?
The value of your home is important whichever loan you choose. Typically the more the house is worth, the more money that one qualifies for. For FHA and Fannie Mae, the appraised value or the current lending limit, whichever is less, is used to determine the value of the house. If the house is worth more than the current lending limit, then the excess equity is not calculated into the qualifying formula. If the amount exceeds the county lending limit, and the need for money is also more than these two loans offer, a Jumbo Reverse Mortgage is an option. This allows seniors with high valued homes to access more cash, but it too has different benefits and features.
