Using a Reverse Mortgage Calculator online can help you determine if a reverse mortgage is right for you.  An online Calculator can also help seniors discover how much they qualify for when searching for a reverse mortgage.

Available Programs:  You have the option to choose either a Fixed or Adjustable Rate loan depending on which one makes more sense for you.

Available Proceeds:  This is determined by the available principal limit which is calculated by utilizing your age, HUD Lending Limit or your home value (whichever is less) and current interest rate. The amount available to you is determined by taking this figure and subtracting all finance fees and any payoffs to existing liens on the property including property taxes.  You can use a Reverse Mortgage Calculator online for free.

·         Fixed Rate Reverse Mortgage:  The fixed rate product currently calculates the highest available proceeds to any given borrower based on their circumstances and requires 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 from your Reverse Mortgage: This is one of the options that you can select on the Adjustable Rate Reverse Mortgage. The available funds in a line of credit on a Reverse Mortgage product 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. Make sure to use the Calculatorfor your new Reverse Mortgage.

·         Monthly Income / Tenure Payout from your Reverse Mortgage:  Another option you have available to you by your reverse mortgage is to receive a guaranteed monthly distribution. You can select to receive these reverse mortgage 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.  

Seniors seeking the HECM should always use a Reverse Mortgage Calculator before sending in an application.

http://www.reversemortgagecalculator.org/