How Much Money Can Be Borrowed in a Reverse Mortgage
In general, the more your home is worth, the older you are and the lower the interest rate, the more you'll be able to borrow. But there are certain limitations both on the home value and on the interest rate.
The system will look first at your home value. If it is more than the FHA limit, it will start at the limit. If it is below the limit, it will start with the home value. Then it will take into consideration the age of the youngest borrower and the current interest rate. However there is a 'floor' to the rate that is considered. If the rate is below 5.5% the calculator will use 5.5%.
Use my calculator to give you a quick picture of how much money you can get.
To avoid the detail and get to the bottom line, move your eyes down to the 3rd group of numbers. The 'Net Available Principle Limit' is how much you get after fees and paying off your mortgage(s). If it has a minus number in front of it, it means you owe that much more than is available to you.
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