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reverse mortgage

how does age factor into the reverse mortgage application process? I know that borrowers must be at least 62 to qualify, but does being older influence the rates or costs of a reverse mortgage? by SMarsh_794_398 from Castle Rock, Colorado. Aug 27th 2012 Reply


Peter Botros (PeterBotros)
#70 ranked lender in New York - 895 contributions

Major factor is the equity in your property. As long as you meet the age requirement, you are ok.

Aug 27th 2012
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William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,726 contributions

Age does not influence the rates or the fees, if it did, it would be illegal. Your age has to do with how much you receive each month, or how much you can pull out up front.. The older you are, the more you can get.. This is why they need to know how old you are... Because reverse mortgages are a government product offered through FHA, it's difficult to be over charged.. not to say that one lender might be willing to do the loan for less than another lender, but the difference will be minimal... I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Aug 27th 2012
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Ken Burrows (mortgagesforamerica)
#19 ranked lender in Nevada - 572 contributions

There really isn't an age factor. It all is based on the amount of loan and the equity in the property.

Aug 27th 2012
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Sandy McKee (smckee)
#41 ranked lender in Arizona - 23 contributions

Hello,No, age does not influence rates or costs. There is virtually no qualifying on a reverse mortgage. The amount you qualify for will be determined by your age and amount of equity in your home. Rates and costs vary widely so be sure to shop around. Best of luck! Sandy

Aug 27th 2012
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Linda Wintersteen (Linda123)
#63 ranked lender in Arizona - 1,256 contributions

email me at yourloanpartnerforlife@live.com its the equity in the property, and age will make a factor just for you to see what style of reverse mortgage that you need... there are different ways to structure it ... linda

Aug 27th 2012
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Gary H (Mod.Specialist)
#71 ranked lender in New York - 25 contributions

We do not know your situation - I caution you about reverse mortgages. Your income and your credit score is not a factors getting approved, over the age of 62 and greater than 50%LTV are the main qualifying factors to be approved. I have worked with many people with different situations after the fact, trying to reclaim a property after their parents had past. If you do have family, I recommend doing a 30yr, or even a 40yr to get you the smallest payment. That way you are still going forward, and your siblings could easily assume a smaller mortgage. Even though after your death, the immediate family has first rights to refinance or purchase the property. I suggest adding the family members to the title, so it is easier. The only way I would suggest a reverse mortgage, only if you were the last person on earth.

Aug 27th 2012
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Jamie Nummer (SomersetLendingCorp)
#29 ranked lender in Michigan - 86 contributions

Age does not influence rates or costs. The amount of equity in the home determines eligibility. Because reverse mortgages are a government product offered through FHA, they are highly regulated. The older you are does not mean you receive more or less.

Aug 27th 2012
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Barb Lanis (BarbLanis)
#70 ranked lender in Illinois - 663 contributions

GaryWSmith is correct. Thank you for answering clearly.

Aug 27th 2012
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Mark Schmidt (markallenschmidt)
#47 ranked lender in Colorado - 21 contributions

Yes, age is the largest factor in how much money you can access from your home. For instance, if someone is 62 and they own a home worth $200,000. They would qualify for about $123,000. If that person was 70 years old, with the same $200,000 home they would qualify for about $135,000. If they were 75, they would qualify for about $140,000. If you owe money on your home you be able to pay that off with a Reverse Mortgage, and if you are behind on payments or facing foreclosure, many times we can help you. As far as costs, the cost for the loan would be basically the same at all three ages. It's a good idea to talk with a licensed Mortgage Loan Originator who can give you a estimate of what a FHA Reverse Mortgage would cost. I have found that many of the people I have helped have been pleasantly surprised at the reasonable cost and great value of a FHA Reverse Mortgage. Thanks, Mark Allen Schmidt 720-206-4539

Aug 27th 2012
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