How Much Can You Borrow - Reverse Mortgage Corvallis

How much could I gain access to with a reverse mortgage, and what are my payment options if I live in Corvallis Oregon?

Answer:

This is dependent upon on the type of home loan, the mortgage company you choose, and also the payment option that you choose.

The majority reverse mortgages today are Home Equity Conversion Mortgages (HECMs). The Federal Housing Administration (FHA), a part of the Department of Housing and Urban Development (HUD), insures HECMs. With a HECM reverse mortgage, you could get your money in one of three ways: as a credit line, in monthly installments, or a one time payment. You can also get a combination of monthly installments and a line of credit.

Note: This webpage has information about HECMs, which are the most common type of reverse mortgage.

To obtain a HECM reverse mortgage your Corvallis mortgage lender will calculate exactly how much you will be authorized to borrow overall based upon your age, the interest, and the lesser of the appraised value of your home or the maximum claim amount. This number is known as your initial principal limit. For those who are borrowing with another person or have a non-borrowing spouse, the principal limit is based on the age of the youngest co-borrower or eligible non-borrowing spouse.

Normally, it is possible to take out up to 60 % of your principal limit in the first year. But, if the amount of money you owe on an existing mortgage (and other required payments) is more than 60 percent of your principal limit, you are able to take out enough to pay back your mortgage (as well as other required payments, which includes upfront loan costs) plus additional money up to 10 % of the principal limit. We refer to these amounts as the 1st year draw limit.

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