• Question
  • How large line of credit with reverse mortgage

    Asked by a 71 year old man from Raleigh, NC on 5/29/2012

    How large of line of credit can I get with a reverse mortgage?

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  • Categories: Loan Amount and Type, Reverse Mortgages

Answers

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  • Steve 

    Steve 
    NewRetirement

    San Francisco, CA

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  • You are allowed to borrow any amount you wish as needed up to the maximum amount you are eligible for. This enables you to keep the end cost of the loan down by only drawing what you need and leaving the rest of the Reverse Mortgage untapped.

  • Login to rate this answer:   Answered on 5/29/2012
  • NewRetirement User

    72 year old from Kent, WA

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  • Your age and the value of your house are they key drivers for the size of reverse mortgage that you are eligible for. If you get an adjustable rate mortgage or a HECM Saver you can choose to just draw what you need when you need it and the rest of the credit line associated with your reverse mortgage should grow over time.

    You can find out how much you might be eligible for here:
    https://www.newretirement.com/reverse-mortgage-marketplace.aspx

  • Login to rate this answer:   Answered on 5/29/2012
  • NewRetirement User

    72 year old from Kent, WA

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    with an advisor. Learn more...
  • The size of a line of credit you can get from a Reverse Mortgage is completely dependent on the size of your Reverse Mortgage loan amount. You can instantly find an estimate of how much you qualify for by reviewing the Reverse Mortgage screen in the Retirement Calculator. Perhaps you found it when you went through the tool, if not then you can see it here:
    https://www.newretirement.com/retirement-calculator/reverse-mortgage-marketplace.aspx

    The amount of money you can get from a Reverse Mortgage is determined using a calculation that takes into account your age, current interest rates, the total value of your property and any loans or liens on the home. The amount of money you can get from a Reverse Mortgage must be more than what you owe on your home. Typically, you will probably qualify for a Reverse Mortgage if you owe less than 50 percent of your home's value, but some people qualify owing as much as 80 percent of their mortgage.

    Your Reverse Mortgage loan can be taken in three ways: cash, annuitized payments or a line of credit. A credit line is money that you have available for use on anything at anytime. A credit line differs from cash in that you only accrue interest charges on the money that you use, not on the amount available to you.

  • Login to rate this answer:   Answered on 5/29/2012
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.