How much money can I get from a reverse mortgage?
The amount depends on the age of the youngest borrower, current interest rates, the appraised home value, and the FHA lending limit. Older borrowers and lower rates produce more. Any existing mortgage balance is paid from that amount first. As a rough frame, many Utah borrowers in their late sixties and seventies see somewhere around 40% to 60% of home value before payoffs, but only a specific calculation gives a reliable number.
The amount depends on the age of the youngest borrower, current interest rates, the appraised home value, and the FHA lending limit. Older borrowers and lower rates produce more. Any existing mortgage balance is paid from that amount first. As a rough frame, many Utah borrowers in their late sixties and seventies see somewhere around 40% to 60% of home value before payoffs, but only a specific calculation gives a reliable number.
Detailed answer
The starting point is the principal limit, which FHA derives from the age of the youngest borrower or eligible non-borrowing spouse, the expected interest rate, and the lesser of the appraised value or the FHA lending limit. Age drives it hardest: a 62-year-old accesses a much smaller share of value than an 80-year-old on the identical home, because the loan is expected to be outstanding far longer. Rates matter nearly as much, since a lower expected rate means slower balance growth and a larger principal limit. From the principal limit, subtract mandatory obligations — the existing mortgage payoff, closing costs, and the initial mortgage insurance premium. What remains is what the borrower can actually use. First-year draw limits also apply to most borrowers, capping how much can be taken in the first twelve months. Any ballpark figure taken from an article, including this one, should be treated as orientation only. Two homes of identical value in the same Utah neighborhood can produce very different numbers based on age alone.
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