While there are a wide variety of reverse mortgages, only three types are nationally available. (Other reverse mortgage products and programs, mostly state and locally sponsored, tend to be for a specific purpose, e.g. solely to make repairs on your home or pay property taxes, and usually are for those who meet certain income or asset limits.)

The three primary reverse mortgage products are:

1. Home Equity Conversion Mortgage (HECM) - This is an FHA-insured (government-insured) loan, with a maximum loan amount of $362,790 (2006). The actual amount depends on your exact location, as limits vary by county. HECM is the most common reverse mortgage, accounting for 90 percent of all reverse mortgages in the United States.

2. Fannie Mae Home Keeper® - This Fannie Mae-insured loan offers a maximum of $417,000 (2006). It is often used to buy a smaller or more accessible home. (My book, Reverse Mortgages -- Cash for the Rest of Your Life!, shows how this is done.) Fannie Mae is actually a private company, formerly known as the Federal National Mortgage Association. Although Fannie Mae is quite large, they are not the government. However, because of their size and the amount of regulation over them, their guarantee (their insurance) is virtually the same as the government's.

3. Financial Freedom Cash Accounts - These are usually best for homeowners with high-value homes and high equity balances. These loans have no limit. They are offered by, and guaranteed by, a large private company.

Of course, anyone entering into a reverse mortgage will want to pick the type that pays the most to them. Unfortunately, there is no easy rule of thumb as to which loan results in the maximum payout. A number of factors affect the maximum amount, or loan limit, you can borrow. Your loan limit will depend on:

Loan Limits.

* HECM loans are guaranteed by the FHA, so FHA loan limits apply to all HECM loans. Limits vary by county and range from $200,160 to $362,790. They are 50% higher ($544,185) in Hawaii, Alaska, and the Virgin Islands. To find the loan limit for your specific area, visit the FHA's web site at: https://entp.hud.gov/idapp/html/hicostlook.cfm.

* Fannie Mae Home Keeper® loans have one national limit of $417,000 (but are also 50 percent higher in Hawaii, Alaska, and the Virgin Islands). While this amount is higher than HECM, other differences in the calculations often result in a smaller loan.

* Financial Freedom Cash Account loans have a $75,000 minimum; there is no maximum, although it tends to be best suited for homes worth at least $500,000.

Home Value. The higher the appraised value of your home, the more you can borrow, up to the limits for the type of loan. Lenders' calculations use your home's value or the lending limit, whichever is lower. In other words, a $300,000 home in a county with a $175,000 limit is treated as a $175,000 home.

Age of borrower(s). The older the borrower(s), the more you can borrow. Some loans consider an average of the ages of both borrowers (if there are more than one), while others may consider the age of the youngest borrower only. Your age, whether there is another person on the title, and the age of the other person will all affect the amount of money you can expect.

The age at which you take out a reverse mortgage has a large impact on the amount of money you will receive. Lenders know that, most likely, older people will not live as long, and therefore, they will have to pay less to older borrowers. Also, if you are within six months of your next birthday, you will get the benefit of the higher age and qualify for the larger loan.

Interest Rate. The lower the rate, the more you can borrow. You can also select the payout option with the lowest rate, e.g. monthly vs. annually.

Limits vs. Loan Payouts. It is important, however, not to confuse the loan limit for a particular type of reverse mortgage with the maximum payout you can expect. For example, on a typical HECM loan with a limit of about $300,000, the actual payout will be about two thirds of that. Keep this in mind as you plan your financial future.

Gratefully, you won't have to do all of the 'number crunching' yourself. Because reverse mortgages require a counseling session, your counselor can prepare the necessary calculations for you. In other words, someone else will do the calculations. You just need to pick the best answer.

Since there are so many variables that can impact the amount of money you receive, Reverse Mortgages -- Cash for the Rest of Your Life! goes into many examples in detail, illustrating various options and how they might affect your reverse mortgage payout.

To learn more about reverse mortgages, and the book, visit my web site, http://www.ReverseMortgageBook.com.

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