Before you decide anything, understand how a reverse mortgage really works, what it costs, what happens to your home, and the situations where another option may be better.
A Home Equity Conversion Mortgage, or HECM, is an FHA insured reverse mortgage. It allows an eligible homeowner to borrow against a portion of the home's value. The available amount is driven primarily by the age of the youngest borrower or eligible spouse, the expected interest rate, the home value, and the FHA HECM limit.
HUD uses a Principal Limit Factor based on age and the expected mortgage interest rate. The factor is applied to the applicable maximum claim amount.
An existing mortgage generally must be satisfied from the reverse mortgage proceeds, along with applicable financed closing costs and required set asides.
Depending on the program structure, remaining proceeds may potentially be available through a line of credit, monthly advances, an initial draw, or another permitted option.
No. A reverse mortgage is a lien against the property, much like another mortgage. The homeowner generally remains on title. The loan balance grows as interest, mortgage insurance, and any advances are added to the balance, and the loan becomes due after a qualifying maturity event.
This calculator uses selected HUD published Principal Limit Factors and interpolation to illustrate the basic mechanics. It is not a quote and should not be used to determine actual loan proceeds.
The actual HUD factor table contains far more age and rate combinations. Actual proceeds also depend on closing costs, upfront mortgage insurance, mandatory obligations, financial assessment, set asides, initial disbursement limits, program structure, lender pricing, and current guidelines.
This number is intentionally shown as a difference, not "cash available." It can be materially reduced by required payoffs, mortgage insurance, closing costs, set asides, and program limitations.
Have a Team Member Run the Real NumbersThe loan does not disappear. When it becomes due, the home can generally be sold and the reverse mortgage repaid from the proceeds. Heirs may also have options to retain the home by satisfying the loan under applicable program rules.
We are an independent mortgage broker. Our goal is to explain the available paths, compare the tradeoffs, and help you decide whether a reverse mortgage belongs in the conversation at all.
Yes. The homeowner generally remains on title. A reverse mortgage creates a lien against the property and the borrower must continue meeting the program and property obligations.
A traditional required monthly principal and interest payment is generally not required while the borrower meets the loan obligations. Interest, mortgage insurance, and other amounts can accrue to the loan balance.
Property taxes, homeowners insurance, maintenance, HOA charges when applicable, and other required property charges remain the homeowner's responsibility.
The amount depends on factors including age, expected interest rate, home value, the FHA maximum claim amount, existing liens, mandatory obligations, costs, financial assessment, and the payment plan selected.
Potentially. Heirs may have options to retain the property by satisfying the reverse mortgage according to applicable program rules. The exact options depend on the circumstances at that time.
No. It can be used for different retirement and liquidity goals. Whether that strategy is appropriate depends on the homeowner's larger financial and housing plan.
HECM borrowers generally must complete counseling with an approved HECM counselor before the loan can proceed.
Pick a time below to talk with an AZM Lending team member. We can review the home, current mortgage, goals, and whether a reverse mortgage is even worth pursuing.
Prefer to call? 623-233-4335 • info@myazm.com