Reverse Mortgage Calculator

HECM Standard & Saver: You have the option to choose either a Fixed or Adjustable Rate loan depending on which one makes more sense for you. Complete step 3 for a written quote or call our office Toll Free (800) 565-1722 to learn more about the differences between fixed and variable rates.

Principle Limit / Loan Amount: This is determined by the available principal limit which is calculated by utilizing your age, HUD Lending Limit or your Home’s Value (whichever is less) and current interest rates. The NET amount available to you is determined by taking this figure and subtracting all financed fees and any payoffs to existing liens on the property including property taxes.

Fixed Rate: The fixed-rate reverse mortgage currently calculates the highest available proceeds to any given borrower based on their circumstances and require a cash lump sum of all funds at closing. Typically, there are less closing costs on the Fixed Rate because you are required to take all available proceeds at closing.

Line of Credit: This is one of the options that you can select on the Adjustable Rate products. The available funds in a line of credit grow with your age (The growth is calculated based on your interest rate + 1.250% monthly insurance). This is not to be confused as “earning interest” but rather increased borrowing ability as you get older, since Reverse Mortgages are “Age Based” loans and the older you are the more you qualify for. Also, you only have interest accrue on the money you advance from the credit line, so you can preserve more equity in your home. Lastly, unlike your standard Home Equity Line of Credit or “HELOC”, your Reverse Mortgage line of credit is federally insured and is guaranteed to always be available. Your bank cannot arbitrarily decide to freeze the account or lower your available line in substandard market times.

Monthly Income / Tenure Payout: Another option you have available to you is to receive a guaranteed monthly distribution. You can select to receive these funds for life (Tenure) or for a specified amount of time (Term). If you choose to receive the funds on a monthly basis, these funds can be direct deposited to your account at the beginning of each month and are *tax-free and guaranteed as long as you live in your home. The best feature of the monthly payment option is that the payments are guaranteed to never stop as long as you still live in your home even if you live to be 100 or more.

Combinations: You can also choose to have your available proceeds broken up in a number of different options or a combination of all available options. (Examples: 1. 50% Line of Credit, 50% Payments, 2. 25% Cash Advance, 75% Line of Credit, 3. 25% Cash Advance, 25% Line of Credit & 50% Payments, etc.)

Calculator FAQ's:

Q: What are the Fees?
A: The fees that you will pay on a Reverse Mortgage loan are similar to a standard or “Forward” mortgage with the exception of the Mortgage Insurance Premium. Our Reverse Mortgage Calculator provides a net estimate of the anticipated closing costs. The difference on the Reverse Mortgage is the 2% Mortgage Insurance Premium that is charged by FHA in order to provide you with the protection of the Government Insurance. Learn more about Reverse Mortgage Fees »

Q: Will I pay Taxes on these proceeds?
A: Funds received from your loan are generally considered to be *nontaxable as the money received is not income earned. You should always consult your trusted tax advisor.

Q: Is the interest added to my balance tax deductible?
A: *Only when a payment is actually applied to your loan, or when the balance is paid in full. Learn more about interest deductions »

Q: Can I make a payment back?
A: Yes. While a Reverse Mortgage does not require regular scheduled monthly payments, the program does permit a borrower to make voluntary partial or full payments on the loan. As stated before, there is no penalty to paying down or off your loan at any time. Also, if the loan is a fixed rate, funds submitted for prepayment cannot be re-borrowed at any point during the life of the loan, and the revolving credit feature does not apply. Learn more about making payments »

Q: What if I don’t want to take the full amount that I qualify for?
A: Reverse Mortgage Loans are not subject to prepayment penalties and therefore you can repay any portion of the excess proceeds you received at closing at any time to lower your balance, or you can choose a line of credit and only advance the portion of funds that you wish at closing.

Q: When is the interest rate actually locked in?
A: Reverse Mortgage loans cannot be locked in until after the appraisal on your home is completed and your loan has been approved by Underwriting.  At that point, the Loan Officer can lock in the loan for 15 or 30 days.

Q: What happens if the interest accrued exceeds the value of our home?
A: Since a HECM is insured by HUD, you are guaranteed that you and your heirs will never have to pay more than the property is worth in a bona-fide sale at time of maturity on the loan. Learn more about Non-Recourse loans »

Q: Why do available proceeds vary from Lender to Lender? I thought that all Reverse Mortgages are the same?
A: The reason why proceeds vary from Lender to Lender is because each individual company sets different rates and margins for the products they are offering. Each Lender has the ability negotiate / set it's own fees and margins, and it is always a good idea to compare your options.

Q: Will the proceeds affect Social Security or Medicare?
A: Proceeds will not affect public benefits such as SS or Medicare, but can affect "need based" programs such as Medicaid / Medical. Learn more about Medicaid & SSI »

*Tax-Free: Always consult your trusted tax-professional, reverse mortgage calculator results are not an offer to lend.