How Much Money Can I Borrow?

There is no simple equation or formula I can give you the enable you to know the exact amount you are eligible for.  Once you have met with your originator you will be told this figure.  I can tell you that the amount is determined based on:

• The Value of your Home – This is really a combination of the value of your home and the amount of equity you’ve built up.  The more equity, the more money available to you for borrowing.
• Interest Rates – As we know these change on a regular basis.  Lower interest rates equate to higher principal.
• The Area – Higher home values in the area you live mean a higher loan value for you if you chose an HECM of Home Keeper Loan.  These both use county medians to figure your loan principal amount.
• Your Age – The general rule is that being older is to your advantage when it comes to reverse mortgages.