$822,375
Reverse Mortgage Loan Limits For the government-insured Home Equity Conversion Mortgage (HECM), the maximum reverse mortgage limit you can borrow against is $822,375 (Updated January 1st, 2021), even if your home is appraised at a higher value than that.

How is the interest calculated on a reverse mortgage?

How Do Reverse Mortgage Rates Work? As with most other loans and credit lines, reverse mortgage interest rates are charged on the funds that you receive from your loan. These charges are calculated daily and added to the loan balance monthly, and can be found on every borrower’s monthly statement.

What’s the maximum amount you can get with a reverse mortgage?

The maximum limit for a reverse mortgage, also known as a Home Equity Conversion Mortgage (HECM), is $625,500. Private lending companies also offer reverse mortgages, which may have a higher maximum limit, but their loans will not be insured by the Federal Housing Administration (FHA).

How old do you have to be to get a reverse mortgage?

Currently, the premium is 1.25 percent on the loan balance for HECM programs; private programs may have different premiums. For HECM loans, the youngest borrower must be age 62 or older. Spouses less than age 62 cannot be HECM borrowers, but if they live in the home, their ages affect the maximum loan amount.

What happens to the money you get from a reverse mortgage?

The sum of money that you receive from a reverse mortgage is not taxable and can be in the form of a lump of cash, monthly payments, or a line of credit, which can be used much like a credit card. After the borrower dies or sells the home, the reverse mortgage loan will have to be paid back with interest, usually by the borrower’s heirs.

What are the different types of reverse mortgages?

Depending on your needs, there are 3 main variations of the HECM reverse mortgage: 1. The HECM Fixed Rate RM a. To pay off an existing mortgage. b. Be taken as upfront cash. Because you are accumulating interest on the full loan amount from day one of the loan, a fixed interest rate will be offered. 2. The HECM Adjustable Rate RM