Factors that Affect Your Reverse Mortgage Payout
No financial decision should be made with limited information. Therefore, Citizens Lending Group is firmly committed to educating borrowers about all of the reverse mortgage pros and cons. We seek to provide as much valuable education and information as possible to be as useful as possible to our customers when helping them decide whether a reverse mortgage loan is right for them.
When considering a reverse mortgage, one of the first things that you need to know is how much your loan will payout before you undertake the process of signing up. This ensures that you will have enough money to cover the expenses you need without facing charges that may be unreasonable. In Pennsylvania, California, or Florida, contact us today to learn more about reverse mortgage requirements and factors affecting your loan payout.
How Reverse Mortgage Payouts Are Determined
The first thing to note when determining reverse mortgage loan amount, is that a reverse mortgage does not have a set value-to-loan ratio. That means the home equity you have built up in your home is not the sole deciding factor in the amount you are eventually loaned. Some of additional factors considered in the process include:
You must be at least 62 years old to qualify for a reverse mortgage loan. Since the loan is based on the amount of time you have it before it is paid off, the older you are the more you can borrow since you will most likely pay it off sooner.
Your home equity is one of the biggest factors in determining how much you can receive from a reverse mortgage. These HECM loans are designed to give you access to the equity you have built up in your home and this is largely determined by the resale value of your home. Reverse mortgage calculators can help you estimate this value.
Current interest rates at the time of your loan also affect how much money you can receive. You do not make monthly payments with a reverse mortgage so the interest is factored into how much money is made available to you based on the equity in your home.
Your Personal Financial Situation
If you have liens or mortgage balances left to pay, these must be paid in full by your reverse mortgage so less of that amount will be available to you as cash. This is important as it can reduce the total amount you take away from an HECM loan.
Contact Us Today to Learn More About Other Reverse Mortgage Limitations
Accessing your home equity with an HECM reverse mortgage loan can be a smart choice for many people. As long as you know the exact factors affecting your payout, you can make a sound financial decision. However, there is no perfect formula to calculate the cash available from your loan without speaking to a qualified lender. The information above should be used as a starting point. From there, contact Citizens Lending Group in California, Florida, or Pennsylvania to learn more about reverse mortgage requirements and how much you can expect to receive from your home.