Okay, so you only have 55% equity. Can you still play? Yes, but with limits. You might qualify, but the amount you can borrow will be smaller. Think of it as a “starter pack” reverse mortgage.
Here’s the annoying part: your age matters. The older you are, the more you can borrow, even with the same amount of equity. Why? Because life expectancy (sorry, not sorry) means the lender expects to pay you for fewer years. If you’re 73, you get more cash than if you’re 62—even if you both own 60% of the house.
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And don’t forget the home’s value. A $200,000 house with 50% equity is different from a $500,000 house with 50% equity. The latter gives you a bigger check. It’s math, but not the scary kind.
