 The calculator on the right and the chart below give you an idea of the amount that can be borrowed with a reverse mortgage based on age an various interest rates. Please use these figures only for estimating purposes and contact Direct Finance Corp. for more precise figures based on your particular situation. For more specific examples, go here.
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The Federal Housing Administration (FHA), part of the Department of Housing and Urban Development (HUD) determines the loan amount based on the age of the borrower, appraised home value, current interest rate, and the HUD also sets the interest rate and fees charged.
The older you are, the more cash you can get. But if there is more than one owner, the age of the youngest is the one that counts. The lower interest rates are when the loan closes, the greater your loan amount will be.
Loan Repayment
As with most reverse mortgages, you must repay a HECM loan in full when the last surviving borrower dies or sells the home. It also may become due and payable if:
• you allow the property to deteriorate, except for reasonable wear and tear, and you fail to correct the problem; or
• all borrowers permanently move to a new principal residence; or
• due to physical or mental illness, the last surviving borrower fails to live in the home for 12 months in a row; or
• you fail to pay property taxes or hazard insurance, or violate any other
borrower obligation.
