The number of funds available from the reverse mortgage are based on several factors which include the age of the youngest borrower or spouse, current interest rates, and your home’s property value. Interest rates will have a direct effect on your available proceeds; the lower the rate, the more available funds you will receive.
Don’t forget to include your spouse’s date of birth, even if they are not yet 62 as proceeds are always based on the age of the youngest spouse due to actuarial tables (life expectancy).
When you close a reverse mortgage within 6 months of your next birthday, your calculations automatically move you into the next year’s principal limit factor.
If you have a HELOC (Home Equity Line of Credit), be sure to include this balance as part of the total mortgage payoff.
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