Make your microsite tailored for reverse mortgage companies

With a reverse mortgage, you borrow money from the lender, based on the amount of equity you have in your home. The lender may send you the funds from the reverse mortgage in one lump sum payment, a series of monthly payments, or some combination of those.

Typically, a reverse mortgage allows you to get up to 55% of your homes value, excluding interest. The answer to how much money you can get depends on several critical factors, which we will discuss in the next section.

If youre a homeowner aged 62 or older, a reverse mortgage can help you obtain tax-free income, allowing you to stay in your home, pay bills, supplement your income and more.

2024 HECM Reverse Mortgage Benefits by Age Age of BorrowerPrincipal Limit FactorCurrent Lending Limit 62 36.3% $1,149,825 65 38.4% $1,149,825 70 42.0% $1,149,825 75 44.9% $1,149,8253 more rows Feb 6, 2024

The older you are, the more you can borrow. The Loan to Value ratio - or LVR - increases by 1% for each year older than 60. As a guide, if youre aged 60, the maximum amount you can borrow is 20% of the value of your home and if youre aged 75, the maximum amount you could borrow would be 35%.

If you own a home appraised at a high value (and you have a small mortgage), you may be able to get more money. But you will increase your debt and possibly use up your equity. It can be an expensive way to borrow money that limits your options down the road.

Happy New Year! Were kicking off our first article in our 2024 blog series with welcomed good news: The Federal Housing Administration (FHA) increased the maximum claim amount on the Home Equity Conversion Mortgage (HECM), the only type of reverse mortgage loan it insures, from $1,089,300 (2023) to $1,149,825 (2024).

How do banks make money from a reverse mortgage? Lenders mainly make money on the interest that accrues on the loan balance. They also may charge an origination fee and are paid by selling loans to secondary market investors.

There are several kinds of reverse mortgage loans: (1) those insured by the Federal Housing Administration (FHA); (2) proprietary reverse mortgage loans that are not FHA-insured; and (3) single-purpose reverse mortgage loans offered by state and local governments.

Origination fees ($6,000 or less, paid to the lender) Real estate closing costs (paid to third parties) that can include an appraisal, title search, surveys, inspections, recording fees, mortgage taxes, credit checks, and other fees. An initial mortgage insurance premium, paid to the Federal Housing Administration.