• Question
  • what could be the monthly income in a reverse mortgage

    Asked by a 79 year old man from Key Biscayne, FL on 2/18/2014

    what could be the monthly income in a reverse mortgage

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  • Categories: Loan Amount and Type, Reverse Mortgages

Answers

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  • Receiving monthly payments through a Reverse Mortgage is not considered "income" since you are drawing down the value of your asset, which you already own.

    The amount you would qualify for would depend on several factors; age, appraised home value, current interest rates and closing costs.

    Taking a glance at your retirement calculator entries I can see the following:

    Home Value Estimate $730,000 (HECM mortgages may only use a maximum of $625,500 for proceed calculations)
    Zero Mortgage Balance
    Youngest Borrower Age = 70

    In the current product environment you could potentially see a monthly tenure payment of $1,800-$2,000 based on these values.

    We strongly urge you compare rates and fees between lenders to get the most proceeds.

    I hope you find this helpful.

    If you still have questions, or would like us to help you evaluate your situation, we can do that as a free service to you. Feel free to call us at (Toll Free) 888-411-RETIRE (7384).

  • Login to rate this answer:   Answered on 2/19/2014
**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.