In order to be eligible for a reverse mortgage, borrowers must either have complete ownership of their home or possess a considerable amount of equity.
The minimum amount of equity required for a reverse mortgage differs depending on the lender and the type of reverse mortgage, but as a general guideline, it is recommended to have at least 50% equity in your home.
But it is important to understand that 50% is the bare minimum, and more is advisable.
But there are other factors to consider when applying for a reverse mortgage. The age of the borrower and the appraised value of the property are also taken into account.
Generally, the older the borrower and the more valuable the property, the more equity they can access. Additionally, the interest rate on the reverse mortgage and any fees associated with the loan will also impact the amount of equity available to the borrower.
Reverse Mortgage Calculator
Get the desired amount as a line of credit or a lump sum. Our reverse mortgage calculator utilizes three key variables - estimated home value, remaining loan amount, and age of the homeowner - to determine how much tax-free cash you can access. By inputting these variables into the calculator, you can get an estimate of the potential funds that may be available to you through a reverse mortgage.
Please update the values in the form
and click calculate.
Disclaimer - The information provided by this calculator is for illustrative purposes only and is not guaranteed to be accurate. The default figures shown are hypothetical and may not be applicable to your unique situation. It is important to consult with a licensed reverse mortgage professional before making any decisions based on the results obtained from this calculator. This calculator does not have the ability to pre-qualify you for any specific loan program. Qualification for loan programs may require additional information, such as credit scores and cash reserves, which are not gathered in this calculator. MakeFloridaYourHome does not guarantee the accuracy or reliability of the information obtained from this calculator. Please consult with a qualified professional for personalized advice and information regarding your specific reverse mortgage scenario.
With over 50 years of mortgage industry experience, we are here to help you achieve the American dream of owning a home. We strive to provide the best education before, during, and after you buy a home. Our advice is based on experience with Phil Ganz and Team closing over One billion dollars and helping countless families.