The Internet is a great resource for finding out more about reverse mortgages, and using a calculator to see how the loan might best fit your situation is a good place to start.
Why Should I Use a Reverse Mortgage Calculator?
If you’re thinking about getting a reverse mortgage, a calculator can show if you’re eligible and how much you may qualify for.
There are plenty of reverse mortgage calculators available on the web, including the one on our website. This calculator will ask for:
- Your age
- Estimated home value
- Amount you owe on your home
- Your address (including zip code)
- Your telephone number
- Your name
Once you’ve entered this information, our calculator generates a table breaking down how much you might be eligible to receive through the different products available. Most lenders will offer a range of loan options that include both a fixed-rate or adjustable-rate reverse mortgage.
While fixed-rate reverse mortgage loans offer less flexibility, only allowing borrowers to receive their loan proceeds in one lump sum, they do offer a stable, locked-in interest rate, and the calculator can show how much you could expect to receive.
Adjustable-rate loans are more flexible and allow borrowers to get their reverse mortgage loan proceeds in a lump sum, monthly payments, or through a line of credit. Some lenders also offer a fairly new reverse mortgage product, the HECM Saver, for homeowners who want to borrow a smaller amount.
Introduced in October 2010, the Department of Housing and Urban Development created the HECM Saver to “provide seniors with a reverse mortgage option that significantly lowers costs by almost eliminating the upfront Mortgage Insurance Premium that is required under the standard HECM option,” said David Stevens, the former Federal Housing Administration Commissioner at the time.
Why Didn’t I Qualify?
In order to obtain a reverse mortgage, both you and your spouse must be at least 62 years of age. If one of you is not 62, the reverse mortgage calculator will likely say you do not qualify for the loan.
Borrowers with a large remaining mortgage balance may find that they also do not qualify. In order to obtain a reverse mortgage, borrowers must pay off any remaining mortgage balance using the proceeds from the loan.
Reverse Mortgage Calculators and You
When considering any financial product, it’s important to conduct research using reputable sources, and to consult trusted advisors.
Reverse.org’s reverse mortgage calculator allows you to check your eligibility and is a quick way to get an idea of what this type of loan could look like for you.
If you find yourself with additional questions about your eligibility for a reverse mortgage or how much money you could borrow, please contact us for more information or give one of our trusted advisors a call at (800) 976-6211 for a free, no obligation consultation.