8184 / How much money can a person expect to receive from a reverse mortgage?
Generally speaking, the higher the property value, the older the borrower(s), and the lower the current interest rates – the larger the loan. Although it is possible to find slight differences from lender to lender, most adhere to the four variables considered when calculating the maximum amount of a HECM Standard or HECM SAVER loan. These variables often include:
(1) The age of the borrower, or the youngest age of joint borrowers.
(2) The prevailing interest rates in the marketplace in which the loan is being written.
(3) The lesser of the appraised value or the maximum loan limit (set by HECM/FHA at $765,000 for 2020 and increasing to $822,325 in 2021, $970,800 in 2022, $1,089,300 in 2023, and $1,149,825 in 2024)1 (note that these limits were not increased for a number of years, but have increased steadily over the last few years)) or the sales price of the home being purchased.