How much money can you get from a reverse mortgage?

If you are 62 or older find out how you you can allow the equity in your home to work on your behalf to help you retire better.
How much money can you get from a reverse mortgage

Paying bills and owning a home is an inevitable part of being independent. However, when you reach a certain age, you can allow the equity in your home
to work on your behalf. Most people have heard about a reverse mortgage, but there
are often many questions and some apprehension regarding this untypical form of a mortgage. Given the right circumstances, this type of mortgage can
be very beneficial for you and your family. Let’s start with the basics to help you further understand how an arrangement like this works and how much
money you can expect to receive. 

What Is A Reverse Mortgage?

Reverse mortgages have been around for almost 30 years. The first home equity conversion mortgage (HECM) reverse mortgage loan was insured by FHA back
in 1989, but there are still a lot of misconceptions surrounding them.

The HECM reverse mortgage loan is specifically designed for people age 62 and above. It allows you to convert a portion of the value of your home into
money that you can use without ever having to repay it as long as you or your spouse live in the home as your primary residence and keep the property
taxes and homeowners insurance current and maintain the home.

The loan only comes due when you move out of the home or pass away and interest will continue to accrue on it until it is paid off but you never have to
make a payment on it as long as you live there. These loans have long been thought of the last resort for those who are cash-strapped. However, they
have become a realistic way to improve your lifestyle during retirement and help to extend the life of your retirement savings.

Who Benefits Best From This Type of Loan?

A reverse mortgage works best for those who have no plans of moving in the near future. You still must be able to afford the cost of maintaining your home,
and if you have an existing mortgage or equity line on your home, you will need to have enough equity in it to be able to pay these off with the proceed
from the reverse mortgage.

If you have little to no equity in your home, a mortgage like this will not work for you. Also, if you plan on relocating in the next three to five years,
it might not be a worthwhile venture. Consequently, it is best to discuss your situation with a reverse mortgage specialist.

How Much Can I Expect To Receive?

There are three factors that determine the amount that you can receive from a HECM reverse mortgage:

  • Age of the youngest homeowner (or non-borrowing spouse)
  • The value of the home
  • Interest Rate

Most people qualify to receive between 45% to 75% of the value of their home from a reverse mortgage. In a nutshell, the older you are and the more your
home is worth, the more you can receive.

If you have an existing loan against the home, this loan will need to be paid in full. You can use the money from the reverse mortgage to pay it off but
this means that you will receive less.

For instance, if you qualify to receive $180,000 based on the value of the home, your age and the interest rate, but you have a $120,000 mortgage, once
the mortgage is paid off, you would only have $60,000 left over from the reverse mortgage.

Other Things To Consider With A Reverse Mortgage

There are no restrictions on what you do with the money. You can use it to fix up your home or take a cruise, or both, the choice is up to you. However,
there are some restrictions on the amount of money available during the first 12 months of the loan. A lot of people like to receive some money up
front and then set up a line of credit to keep in reserve. Interest is not charged on any funds not used and the line of credit actually grows larger
over time.

The way in which you choose to receive the funds from a reverse mortgage are very flexible. You have a number of choices:

  • Lump Sum – Taking all the money out at once (usually used to pay an existing mortgage)
  • Line of Credit – The money is available whenever you need it but you are only charged interest on the amount actually used
  • Monthly Payment – The lender will deposit money into your bank on a monthly basis
  • Any combination of the above

     

Is A Reverse Mortgage Right For You?

If you are wondering if a reverse mortgage can work for you, you should talk with a reverse mortgage specialist. He will evaluate your current loan and
the equity in your home. Though you can get an estimate of the amount you will receive from an online calculator, they can vary widely. You can’t really
know the exact figures until you have a professional reverse mortgage specialist consider all the factors.

For you to receive this type of loan, you must talk with an independent third party that’s approved by HUD. These counselors will help you to review all
your options and make sure this is the best choice for you. Call today to see if this loan is right for you.

Bruce Simmons

Bruce Simmons

I absolutely love what I do - working with senior homeowners to help them live a more comfortable, flexible and secure retirement. I have the absolute best customers in the world, and even though I worked in the forward mortgage business for a number of years, I could never go back to doing conventional loans. I'm a 100% reverse mortgage specialist.

5.0

My wife and I are retired and had a mortgage that was quite high. We contacted Bruce regarding a Reverse Mortgage and were pleased with his knowledge and experience. He made the whole process very easy and explained everything along the way. Since then, I have had a couple of questions and contacted him regarding the RM. Bruce has always been very responsive and returned our calls within minutes. We couldn't be happier having used Bruce for the Reverse Mortgage and highly recommend him.

Bruce has been serving my interest over and above what one might expect during the whole process of handling my reverse mortgage dating back to 2010 and continues to be available at present whenever a question may arise. He is one of the most reliable, trustworthy and knowledgeable experts regarding reverse mortgages that I have had the privilege to do business with! I would highly recommend Bruce to anyone who is considering a reverse mortgage. Thank you Bruce!

I met Bruce from a referral who just love what he did for them on their Reverse Mortgage, So I contacted Bruce and told him my story and he came up with a great Reverse Mortgage for me and my needs and now I am living good and not worrying about Finances anymore. He had it done in a timely manner. If you are looking for the MAN to help you get the best Reverse Mortgage you need to call him and hope you let him help you.

Bruce is one of the most professional, knowledgeable and efficient experts I have worked ŵith ever in any field. He is fast to answer and always ready to help...and he's a great guy!

Gerald Cook
Gerald Cook
5.0

Bruce did our original reverse mortgage and has also refinanced it twice. He works hard to get the best deal possible while making it as easy for us as possible. When our first refinance received a low initial appraisal, Bruce helped the appraiser find better information and increase the appraised value. He's the best.

I was hesitate about getting a reverse mortgage until Bruce Simons put my mind at rest. He is easy to work with, extremely knowledgeable and efficient. Things get done and he will make sure that you understand every part of the process. I interviewed several other people and he was hands down.....The only choice.

Doing a Reverse Mortgage is a major decision, when working with Bruce he came out personally to go over every thing in detail, there was no pressure to finalize the transaction, I had even put the loan on hold for awhile even though I had locked in my rate, I had called Bruce off and on for a few weeks to ask questions that I had concerns about and he was always available to talk to me. In the end it gave me time to feel comfortable about my decision to move forward with the Reverse. Bruce was very pleasant to work with and would certainly recommend Bruce if you are going to consider a Reverse Mortgage.

Bruce Simmons at American Liberty is one of the best in the reverse mortgage industry. I have known and worked with him for years and he always does a great job. You are in good hands with Bruce and know that he will take good care of you or your loved ones every step of the way.

Best thing I ever did! Bruce Simmons at American Liberty Mortgage is the best. He is always there to answer your questions, and can easily explain the whole idea of a Reverse Mortgage. He takes the time and goes through the entire process with you. It worked out so well for me. Thank You Bruce!

We had researched Reverse Mortgages for 5 years and after hearing about Bruce Simmons and meeting with him, we finally decided to move forward with the Reverse Morgage. It has been over a year now and we are still very pleased with our decision. We think Bruce is very professional, knowledgeable and honest. Thank you, Bruce, for all your help.

I first met Bruce Simmons 2017. I found him on the internet. I was looking for someone local. I called him and explained I was only looking into doing a reverse mortgage, so I did not want him to think this was something I was ready to do. Bruce was friendly, very open about the basics of a reverse mortgage. Bruce came to my home and presented the figures and other details that he could offer. The first thing that impressed me was this was not a hard sell, more of a informational meeting. He was very open about all of the details, and answered my questions without hesitation. What really was evident was he was establishing a relationship with me, and I realized he knew I would not take the loan at that time. There was not enough equity in my home, and I would have to bring money to the table. Although I was not ready to do a loan, Bruce assured me he is always available for questions. Four years later, I finally did do a reverse mortgage, and I couldn't be happier with having done it. I have done away with a mortgage payment which allows me to fund my retirement account with that mortgage payment. We did some much needed landscaping with our cash out transaction, and will move on to improvements inside of the house. My reverse mortgage has a line of credit, and I feel sense security knowing it is there if I need it. Bruce explained that a reverse mortgage is not for everyone, but I feel certain that he paved the way for a strategy that worked for me. I will definitely do a refinance when the time is right. I will check in with Bruce to be sure what the benefits are when I do it again.

I have worked with Bruce Simmons for 15 years. Bruce is one of the best in the industry. He is extremely knowledgeable, kinds and detailed in what he does. His clients love working with him and trust him to help them with their Reverse Mortgage loans. I would recommend Bruce to anyone I know that is thinking about or wanting to do a Reverse Mortgage. He will always take very good care of the customers and make sure their needs are met! Class act and one of the best in the industry by far!

Reverse Mortgage Guide

Free Reverse Mortgage Guide

This 28-page Consumer Guide will help you make and informed decision whether a reverse mortgage is right for you.

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Reverse Mortgage Guide

Reverse Mortgage Guide

This 28-page Consumer Guide will help you make and informed decision whether a reverse mortgage is right for you.

Free E-Book
John Addante
John Addante

Left us a 5 star review

My wife and I are retired and had a mortgage that was quite high. We contacted Bruce regarding a Reverse Mortgage and were pleased with his knowledge and experience. He made the whole process very easy and explained everything along the way. Since then, I have had a couple of questions and contacted him regarding the RM. Bruce has always been very responsive and returned our calls within minutes. We couldn't be happier having used Bruce for the Reverse Mortgage and highly recommend him.

Bruce has been serving my interest over and above what one might expect during the whole process of handling my reverse mortgage dating back to 2010 and continues to be available at present whenever a question may arise. He is one of the most reliable, trustworthy and knowledgeable experts regarding reverse mortgages that I have had the privilege to do business with! I would highly recommend Bruce to anyone who is considering a reverse mortgage. Thank you Bruce!

I met Bruce from a referral who just love what he did for them on their Reverse Mortgage, So I contacted Bruce and told him my story and he came up with a great Reverse Mortgage for me and my needs and now I am living good and not worrying about Finances anymore. He had it done in a timely manner. If you are looking for the MAN to help you get the best Reverse Mortgage you need to call him and hope you let him help you.

Bruce is one of the most professional, knowledgeable and efficient experts I have worked ŵith ever in any field. He is fast to answer and always ready to help...and he's a great guy!

I was hesitate about getting a reverse mortgage until Bruce Simons put my mind at rest. He is easy to work with, extremely knowledgeable and efficient. Things get done and he will make sure that you understand every part of the process. I interviewed several other people and he was hands down.....The only choice.

Doing a Reverse Mortgage is a major decision, when working with Bruce he came out personally to go over every thing in detail, there was no pressure to finalize the transaction, I had even put the loan on hold for awhile even though I had locked in my rate, I had called Bruce off and on for a few weeks to ask questions that I had concerns about and he was always available to talk to me. In the end it gave me time to feel comfortable about my decision to move forward with the Reverse. Bruce was very pleasant to work with and would certainly recommend Bruce if you are going to consider a Reverse Mortgage.

Bruce Simmons at American Liberty is one of the best in the reverse mortgage industry. I have known and worked with him for years and he always does a great job. You are in good hands with Bruce and know that he will take good care of you or your loved ones every step of the way.

Best thing I ever did! Bruce Simmons at American Liberty Mortgage is the best. He is always there to answer your questions, and can easily explain the whole idea of a Reverse Mortgage. He takes the time and goes through the entire process with you. It worked out so well for me. Thank You Bruce!

We had researched Reverse Mortgages for 5 years and after hearing about Bruce Simmons and meeting with him, we finally decided to move forward with the Reverse Morgage. It has been over a year now and we are still very pleased with our decision. We think Bruce is very professional, knowledgeable and honest. Thank you, Bruce, for all your help.

I first met Bruce Simmons 2017. I found him on the internet. I was looking for someone local. I called him and explained I was only looking into doing a reverse mortgage, so I did not want him to think this was something I was ready to do. Bruce was friendly, very open about the basics of a reverse mortgage. Bruce came to my home and presented the figures and other details that he could offer. The first thing that impressed me was this was not a hard sell, more of a informational meeting. He was very open about all of the details, and answered my questions without hesitation. What really was evident was he was establishing a relationship with me, and I realized he knew I would not take the loan at that time. There was not enough equity in my home, and I would have to bring money to the table. Although I was not ready to do a loan, Bruce assured me he is always available for questions. Four years later, I finally did do a reverse mortgage, and I couldn't be happier with having done it. I have done away with a mortgage payment which allows me to fund my retirement account with that mortgage payment. We did some much needed landscaping with our cash out transaction, and will move on to improvements inside of the house. My reverse mortgage has a line of credit, and I feel sense security knowing it is there if I need it. Bruce explained that a reverse mortgage is not for everyone, but I feel certain that he paved the way for a strategy that worked for me. I will definitely do a refinance when the time is right. I will check in with Bruce to be sure what the benefits are when I do it again.

I have worked with Bruce Simmons for 15 years. Bruce is one of the best in the industry. He is extremely knowledgeable, kinds and detailed in what he does. His clients love working with him and trust him to help them with their Reverse Mortgage loans. I would recommend Bruce to anyone I know that is thinking about or wanting to do a Reverse Mortgage. He will always take very good care of the customers and make sure their needs are met! Class act and one of the best in the industry by far!