What are the limits on how much income I can receive from a reverse mortgage?
Reverse mortgage limits are based on: • Borrower Age: The older the borrower(s), the more money you can receive. If there are 2 borrowers (as in the case of a married couple), the age of the younger spouse is used to determine limits. • Value of the Home: All lending programs require a professional appraisal. The higher the value of the home, the more money you can receive. • Market Interest Rates: As with all things in real estate, prevailing market interest rates drive these lending programs. When rates are lower, reverse mortgage proceeds will typically be higher. • Government Program Limits: Reverse mortgages obtained under certain government programs are subject to limits based on the geographic location of the home. Limits for loans obtained under private programs are tied to the underlying appraised value of the home.
