![]() ![]() Otherwise, they can sell the house and use that money to pay what you owe on the RM. They’ll need to refinance if they want to keep your home to use as a primary residence or another purpose. Your heirs will also still have the first rites to your home should you live in this home until you have passed away. ![]() Then you can use the remaining home equity to finance your relocation. Once your home sells, you can use the proceeds to pay the balance of your Reverse Mortgage loan. You will still have the option to sell the house. There is no way to borrow the full value of your home while still keeping the title in your name.Īn advantage of retaining equity in your home is that it gives you more flexibility for your future.Īt some point down the road, you might decide that you want to move into something smaller or move to a new area. Home ownership means that you will keep at least some of your home equity stake. ![]() There are two main reasons that your reverse mortgage calculator loan amount may be less than you think it should be.ĭespite popular belief, you still own your home even after taking out a reverse mortgage. Why Isn’t My Reverse Mortgage Loan Amount Equal to the Full Value of My Home? As such, most reverse mortgage calculators do not account for these available options and you need to speak to a lender to get quotes. Proprietary “jumbo” loan options do not use this limit, and they often have very different fee structures. Most reverse mortgage calculators can only provide information on the HECM reverse mortgage. This means that even if your home is worth more, the amount that you qualify for will be a percent of the maximum amount. As of 2022, the limit on HECM Reverse Mortgages is $970,800. A reverse mortgage calculator can only approximate these values.īecause HECM Reverse Mortgages are Federally insured, there is a maximum property value that can be mortgaged. Using this information, the lender will indicate what percent of your home value can be borrowed.
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