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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76418  
Subject: Re: Reverse Mortgages Date: 7/5/2000 4:41 PM
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Larry asks:

<<I played with the reverse mortgage calculator and came up with some confusing results: for a mortgage above about $200,000, the monthly payout remained the same no matter what amount I entered.

This begs a question which does not show up in the website FAQs; namely, is there a limit on the amount of a reverse mortgage?>>


Yes, there will be an upper limit regardless of what type of loan you get. I don't know what's built into the calculator, but in general the amounts will be a percentage of whatever the HUD, FannieMae and private lender maximums are for conventional mortgages. I would use the calculator simply as a guide.

<<Another question popped into my head after reading David's article: under what circumstance(s) would it make sense to liquidate other financial assets in order to pay off a mortgage at age 62 and then receive income from a reverse mortgage? For the life of me, I can't see why I might do this.>>

The only reason you might wish to do this is if your home is the only real source of cash/income you have. Otherwise, I'm not a fan of reverse mortgages at all.

Regards..Pixy
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