How Much Money Can You Get From a Reverse Mortgage?

Many seniors who have paid or have nearly paid off their homes see the sense of freeing up the equity tied up in their properties.

A home equity conversion mortgage (HECM), which is also called a reverse mortgage, enables you to access cash for the equity of your otherwise non-liquid asset. You can choose to pay off any existing mortgage or invest the proceeds from a reverse mortgage – there are no rules or restrictions on what you can do with the money.

Also, there are a few different ways you can receive money from reverse mortgage, including a lump-sum payment and split payment over a certain period.

What’s The Exact Amount You Can Receive?

The exact dollar amount you can receive depends on a few different factors. Some of these include:

In any case, the maximum amount (known as principal limit) any borrower can receive from a reverse mortgage is $822,375, as of January 2021.

Factors that can Improve Your Reverse Mortgage

You can take a few deliberate steps to increase the amount of cash you can receive from a reverse mortgage.

If you are hoping to take out a reverse mortgage loan sometime in the future (even if you are not yet 62), you can choose to keep your home in good condition and possibly make some home improvements to increase the value of your home.

Consider staying up to date with your property fees and reducing any outstanding loans against your home to improve the worth of your home when it comes time for an appraisal.

What Percentage of Equity Can You Get on a Reverse Mortgage?

You cannot take the entire amount of your home equity, regardless of the appraised value of your home.

There must be enough money left behind to cover the closing costs. Typically, you will be able to take up to 60% of your entire equity in a reverse mortgage.

Changing Payment Options

You are not restricted to your initial payment option after closing the reverse mortgage loan. You can change your payment plans at any time, depending on what you think suits you best at any given time.

Also, you can elect to put your periodic payments on hold for a specified period or adjust the payments by increasing or lowering them.


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Find out how much you can receive with a reverse mortgage by completing the form below.

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