The amount you can borrow depends on your age, the current interest rate, and the appraised value of your home. Generally, the more valuable your home is, the older you are, the lower the interest, the more you can borrow.
Underwriters may require a LESA (Life Expectancy Set Aside) for taxes and insurance if credit history reflects late payments or delinquencies with regard to mortgage payments, property taxes and hazard insurance. A LESA affects dramatically the amount of money received at closing.
How do I receive my payments?
You have six options:
Tenure - equal monthly payments as long as at least one borrower lives and continues to occupy the property as a principal residence.
Term - equal monthly payments for a fixed period of months selected.
Line of Credit - unscheduled payments or in installments, at times and in amounts of borrower's choosing until the line of credit is exhausted.
Modified Tenure - combination of line of credit with monthly payments for as long as the borrower remains in the home.
Modified Term - combination of line of credit with monthly payments for a fixed period of months selected by the borrower.
Lump Sum - Cash is available at closing. There are restrictions.