Home Equity Conversion Mortgage
- The loan amount is based on age, home value, interest rate, and the current lending limit
- The location of your home also affects the loan size. The size of a HECM depends on the maximum loan limit, which varies by count.. Currently (for 2007), the FHA loan limit varies from a low of $160,176 (for rural areas) to a high of $362,790 (for high-cost metropolitan areas).
- In the San Francisco Bay Area, the current loan limit is $362,790.
- HECM borrowers must pay a mortgage insurance premium (MIP), equal to 2 percent of the loan amount up-front, plus an annual premium thereafter equal to 0.5 percent of the loan amount.
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