The table below shows the largest amount
of cash that may be available to you
through four federally-insured reverse
mortgages, which are known as Home
Equity Conversion Mortgages (HECMs):
-- a HECM with an interest rate that can
change every month, that is, a
“monthly-adjustable” interest rate, and
-- a HECM with an interest rate that can change once a
year, that is, a “annually-adjustable”
interest rate.
From an adjustable rate Reverse Mortgage (HECM) you could
get (1) a single lump sum advance at loan closing, (2) OR a creditline account that lets you withdraw cash
at any time, (3) OR a monthly loan advance for as long as you live in
your home, (4) OR any combination of a lump sum advance, creditline
account, and monthly loan advance.
You Could Get
Choose 1, 2, 3 or 4
(1) A single lump sum advance of
(2) Or a line-of-credit account of
that grows larger each year by *
so, if unused, available credit
in 5 years would be
in 10 years would be
(3) Or a monthly loan advance for
as long as you live in your home
HECM Standard
1-month LIBOR
Monthly
$256,073
$256,073
4.03%
$312,042
$380,243
$1,691
HECM Standard
Fixed Rate
--
$303,573
--
--
--
--
--
HECM Saver
1-month LIBOR
Monthly
$211,023
$211,023
4.03%
$257,146
$313,349
$1,394
HECM Saver
Fixed Rate
--
$259,523
--
--
--
--
--
(4) Or, any combination of lump sum, creditline account, and monthly advance.
* The creditline
growth rates for the
HECM's above are
based on May 2011
interest rates.
Actual growth in
your available HECM creditline
will vary with
future changes in
rates.
If you currently owe any debt on your
home, and do not pay it off before
getting a reverse mortgage, you must
take at least that amount as a lump sum
advance at closing, and use it to pay
off your debt at that time. This would
reduce the amount of cash available to
you in a single lump sum, creditline or
monthly advance. If you do not qualify
for enough cash to pay off any debt on
your home at closing, you cannot get a
reverse mortgage.
For example, if you still owe
$20,000 on a mortgage or home equity
loan and do not pay it off before
closing a reverse mortgage, you would
have to qualify for at least $20,000 in
a lump sum from a reverse mortgage, and
then use it to pay off your debt at
closing. If you qualify for more than
$20,000, you could take the rest in cash
at closing, leave it in a creditline, or
take it as monthly advances.
All estimates on this page are based
on maximum allowable origination and
servicing fees, an approximate national
average of other closing costs, and
interest rates that are generally
available for the week of for the week
of May 3rd, 2011. Actual loan amounts depend
on the interest rates, origination fee,
and closing costs that are actually
charged on a loan. These loan amounts
also depend on the appraised value of
your home and the HECM program’s home
value limit, which is currently
$625,500. This limit means that if your
home is worth more than $625,500, your
loan amount is based on a value of
$625,500 rather than its actual value.
Creditline growth projections show
maximum potential future available
credit assuming continuation of the
current creditline growth rate
(which could increase or decrease)
and no creditline draws. The more
credit you use sooner, the less cash
will remain available.
