How much equity can I access? At TSIT, we find this is the first thing most homeowners want to know. The fact is, everyone’s going to have a different situation, based on a combination of following factors: (Just click on the link to learn more about each of these.)

• Age of the youngest borrower

• Property value or lending limit

• Closing costs

• Interest rates

• The type of reverse mortgage you are considering

Variables that can affect the monies available:

Reverse mortgages are not complicated. But there are variables that need to be taken into account when considering this type of mortgage. A TSIT advisor will help you learn the ins and outs of reverse mortgages — and understand your options — so you can make the best decision for yourself. Here’s a quick overview of some of the most important variables. 

Age of youngest borrower:

You are eligible to apply for a reverse mortgage if the youngest borrower is age 62 or older. A larger percentage of equity is made available the older you are. This does not necessarily mean you will have more money if you wait and apply for a reverse mortgage in the future, as changing interest rates and home values could cause less money to be available at that time. 

Property value or lending limit:

Your property value will be determined by a licensed appraiser. The appraiser will look at what similar homes have sold for in the last 6-12 months within a one mile radius. Based on number of rooms (bedrooms, bathrooms, ect.), you will receive an estimate of what your current market value is. This market value may be capped at a certain value based on what program you are considering. This is where TSIT has the knowledge to help you consider all your options available.

Closing costs:

Like a traditional mortgage, closing costs can be paid out of pocket or financed into the loan. While costs vary based on the type of reverse mortgage you choose, your costs may include, but are not limited to, a mortgage insurance premium (for HECM only), a bank fee, title insurance, registry fees, attorney fees, and an appraisal. Typical closing costs can range from $5,000 to $20,000. When determining which program suits your needs, closing costs should not be your only consideration. You need to factor in interest rates as well as closing costs because a loan with zero closing costs could cost more in the future due to a higher interest rate. Click Here – Reverse Mortgage Closing Costs

Interest rates:

Interest rates may be adjustable or fixed. If rates are lower at the time you get a reverse mortgage, a larger percentage of your equity will be available. If rates are higher, you will receive a lower percentage. Interest rates will vary based on the program you consider and they are continuously changing in today’s market. We understand today’s market at TSIT, and we are committed to helping you find the appropriate reverse mortgage with the best rate. Click Here – Reverse Mortgage Interest Rates

Type of reverse mortgage:

Whether you are deciding on one of the various HECM programs or a Jumbo Reverse Mortgage will also determine what you are eligible for.