Reverse Mortgage Lending Center - Information on Reverse Mortgages

Determine How Much Money you can Borrow with a Reverse Mortgage

A reverse mortgage may be your solution to financial difficulties if you are a senior citizen and you owe nothing or close to nothing on your home. You can use the equity in your home to borrow money from a lender and you don't have to make any payments until the home is sold. If you are interested in a reverse mortgage you may be wondering how much money you can borrow.

To determine the amount of money you can borrow from a reverse mortgage there are many factors to consider including:

• The value of the home. The home will be appraised to determine the market value of your property and you will be able to borrow up to 80% of the equity in your home depending on the other factors they consider when originating a reverse mortgage.
• Your age at the time you apply for the reverse mortgage. The older you are the more money you can take out of the equity in your home.
• The total amount you can use will depend on the amount of loan closing costs, mortgage insurance rates, and interest rates.
• For HUD reverse mortgages there is a maximum limit you can borrow which depends on where in the country you live. If the cost of living is higher in the area you live in you may have a higher limit than someone who lives in a rural area with a lower cost of living. Once you contact a lender and HUD they will get the information they need in order to determine what your maximum lending limit is.

Make sure that you contact HUD before you decide to take out a reverse mortgage on your home. They will be able to explain all of the positive and negative facts about reverse mortgages and they will provide you with a FHA approved housing counselor who can help you through the process. Learn about the 3 Types of a Reverse Mortgage.

For more information on HUD reverse mortgages go to http://www.hud.gov/.