How Much Income/Money Will You Receive With a HECM Loan – How much can I expect to receive with the reverse mortgage? Head over to our reverse mortgage calculator page, there you can input your information and we will give you an instant estimate of how much you money you can qualify for, this is an accurate estimate and it shows the 4 different HECM programs that seniors can choose.

Free reverse mortgage calculator

You are probably also wondering which are the ways you can receive you equity with a reverse mortgage! visit this page for a detailed overview of the HECM programs.

Your options when it comes to getting your equity

1.) HECM Standard fixed rate – this is the option for those who want the most amount of equity in a lump sum at a fixed interest rate – rates are low and if you believe your home will not appreciate much in the near future this is a great way to use the HECM as an insurance.

2.) HECM Saver fixed rate – You will not have access to as much equity as the Standard but the benefit is that you wont get charged such a high upfront mortgage insurance premium fee, this can save you thousands in fees.

3.) HECM Standard adjustable rate – same as number one but you will have an adjustable rate.

4.) HECM Saver adjustable rate – the rates on the Saver adjustable are extremely low, so in this case you will have a very low interest rate, reduce mortgage insurance premium fees, but will not have access to the most equity possible. (choose between credit line, or lifetime monthly income)

What Determines How Much I Receive With a HECM Loan & How Much Can I Expect to Receive From Taking a Reverse Mortgage

• your age ( the older you are the more equity you can take out )
• amount of equity you have available ( the more equity you have available the more equity you can take out )
• the HECM program you choose (Standard or Saver – take out more equity with the Standard program – pay less in fees with the HECM saver reverse mortgage)
• your financial well being may come into play ( credit scores, income, mortgage/taxes/insurance payment history – top lenders implemented this late into 2011 – we still have lenders who don’t need these requirements)

Reverse mortgages are not based on your credit score or your income unlike a traditional forward mortgage, the only requirements are age and equity ( equity is when your home is worth more than any outstanding debts ) . Both of these requirements affect how much you will receive, and the last factor to determine how much money you will receive is depended on you ( you can select a standard or adjustable product ).

*** There are currently new changes that came from HUD – now lenders/banks are able to review your income and credit scores and they are going to take this into consideration, therefore this loan is now based on income and credit scores ( while this is still being introduced we have lenders who are able and willing to lend without you having a certain income or credit score.)

*** Update Nov 14 2011, Metlife is now the first lender to review your
financial position in order to qualify you for the program ( income,
credit scores, and your mortgage payment history are all important
factors for some lenders going forward.)

We Can Tell You How Much You Will Receive With A Reverse Mortgage

Do you want to know exactly how much you can qualify for with a reverse mortgage, then go ahead and call us or fill in the form to the right. The benefits of using our free service is that we will compare up to 4 quotes today, so you can be reassured you are getting the best reverse mortgage rate/loan possible.

You Choose How You Receive This Money

You will have the choice to select how you want to receive the payments, which in turns affect how much money you get and when. So for example, if you need a lump sum upfront you can select this option, or if you want a steady paycheck you can select that option. Depending on how you structure your income, the overall amount will change depending on how much risk the bank will take. It is better for the bank for you to receive a monthly income since there is a higher chance you will not live long enough to collect all payments.

All income from a reverse mortgage is tax-free and once the loan comes due (after both borrowers leave property for 12 months) tax deductions can be made on the interest charges providing another benefit.

You can receive:

• lifetime monthly income
• lump sum ( fixed rate )
• credit line ( adjustable rate )
• combination of income streams

With reverse mortgage rates at all time low’s many seniors are able to borrow at 5% or less and with the lump sum option they can actually offset the costs of borrowing this money by re-investing and earning interest on the money. If you can earn 4-6% year safely, plus the home value/appreciation will increase, therefore you will essentially not loose any equity going forward ( you are not paying any interest on the reverse loan.)

FAQ About how much income/funds I can receive with a reverse mortgage

1.) Am i able to later on refinance my reverse mortgage to receive more money? yes, you are able to refinance the HECM loan.

2.) Are there ways to reduce the fees so this way I can receive even more money? yes, we work for you to find the best lenders who are willing to reduce their fees, and who meet our expectations for excellent services.

3.) Do some HECM lenders pay more income than others? yes, different banks have different lending abilities this can make a difference in even getting you qualified.

4.) Do some lenders charge lower interest rates which leads to me getting more funds/income? yes, again we work hard to compare multiple lenders and in finding you the best interest rate at the lowest cost.

5.) Is it possible to only put on spouse who is older so we can take out more funds? yes, this usually is the case when only one borrower qualifies, there is a risk that if something happens to the borrower who is on the loan that the other borrower will be responsible to repay the loan.

6.) What happens if I need more money in the near future? or what happens if I spend all the money from my reverse loan? Your home will continue in value, this will create or allow you to keep a portion of your home equity at all times, the more equity you have in the future the easier it is for you to access it again. You need to practice good money management when you receive the HECM loan proceeds thus spending all our money will leave you in a negative situation if you dont have another fund to tap into.

7.) How do i know that the bank will continue to pay me and I wont be a victim of a scam ( not receiving funds)? The program is a government insured program

to learn more about the reverse mortgage loan:

reverse mortgages pros and cons
reverse mortgages how they work
reverse mortgage disadvantages
reverse mortgage interest rates
what is a reverse mortgage