What is the Maximum LTV for a reverse mortgage Is it based on an appraisal can the current mortgage vbe wrapped around within the reverse mortgage and be paid off to the current lender?

Answer 1

The Maximum amount (called the principle limit) is based on 3 things.

1: age of the youngest applicant. The older you are the more you get from the proceeds.

2: Home Value- the more valuable the home (up to the lending limit of $625,500 the more proceeds are available)

3: Interest Rates - Anytime the expected rate is greater than 5.50% less proceeds will be made available

What is a Reverse Mortgage?

A Reverse Mortgage is a financial instrument available for seniors 62 years or older. A regular mortgage requires the borrower to make a monthly payment that generates equity; a reverse mortgage does the opposite by paying you either a monthly payments or one lump sum from your home's equity. The owner of the home retains title and full ownership of the home and repayments of the loan are deferred until after the senior permanently vacates the home.

A Reverse Mortgage is a loan, but in reverse. You retain title, and ownership, with full control of your home. When you do a Reverse Mortgage you will never be forced from your home since there is no time limit with the loan. The Federal government guarantees all Reverse Mortgages. There are no personal liabilities to you or your heirs. Repayment is due after all homeowners permanently vacate the home. The money you receive from the lender with be tax free, and never required to pay any of it back, even if the home value drops below the loan payment.

A Reverse Mortgage will not affect the appreciation of your home. Your home may or may not continue to increase in value. You receive the money from a Reverse Mortgage, by way monthly payments, lump sum or even a line of credit; or a combination of the three. The amount of money you receive from a Reverse Mortgage depends on few factors, your age, appraised home value, interest rates, and the location of the property. The older you the more money you get from a Reverse Mortgage. The funds you receive from a Reverse Mortgage can be used for anything you want, it's your money.