Reverse Mortgage Calculator

Calculate Estimated Reverse Mortgage Amount

How to Use the Calculator

To use the reverse mortgage calculator, follow these steps:

• Enter Your Age: You must be at least 62 years old to qualify for a reverse mortgage.
• Enter the Value of Your Home: Input the current appraised value of your home.
• Choose Your Loan Type: Select either a fixed-rate or adjustable-rate mortgage option.
• Enter the Interest Rate: Provide the estimated interest rate for your reverse mortgage.
• Select a Disbursement Option: Choose how you want to receive your reverse mortgage funds:
  • Lump Sum: Receive the entire loan amount in one payment.
  • Monthly Payments (Tenure): Receive equal monthly payments for as long as you live in your home.
  • Monthly Payments (Term): Receive fixed monthly payments for a specific number of years (you will be prompted to choose the term length).
  • Line of Credit: Access funds as needed, allowing the remaining credit to grow over time.
  • Combination: Receive a portion of the funds as a lump sum and leave the rest available as a line of credit.

Once you have entered all the required information, the calculator will estimate the total loan amount you may qualify for and, if applicable, provide an estimate of your monthly payments.

Variables Used in the Calculator

The reverse mortgage calculator uses the following key variables to estimate the loan amount:

• Age: Your age is a major factor in determining the amount you can borrow. The older you are, the more equity you can access.
• Home Value: The current market value of your home is used to determine the available loan amount. Generally, the higher the home value, the more you can borrow.
• Interest Rate: The interest rate impacts the amount you can borrow. Lower interest rates typically allow for a larger loan amount.
• Disbursement Option: How you choose to receive your funds affects the loan amount and repayment structure. Some options may result in a higher or lower overall loan amount based on your selection.
• Loan Type (Fixed or Adjustable): This determines whether the interest rate remains fixed or changes over time, which can also affect your loan.

Example Scenarios

Here are a few example scenarios of how your reverse mortgage disbursement options might look:

• Lump Sum: You will receive the full loan amount in one payment. This is ideal for large, one-time expenses, such as paying off an existing mortgage.
• Monthly Payments (Tenure): You will receive consistent monthly payments for as long as you live in the home, providing a steady source of income.
• Monthly Payments (Term): You can choose to receive monthly payments over a specific period, such as 10 or 20 years, which can help plan for future expenses.
• Line of Credit: You have the flexibility to withdraw funds when needed, allowing the unused portion of the loan to grow over time.
• Combination: This option gives you the best of both worlds by receiving a portion of the loan upfront as a lump sum and the rest as a line of credit.

Disclaimer

Please note that the reverse mortgage estimate provided by this calculator is for informational purposes only. Actual loan amounts may vary based on the specific details of your loan, lender policies, and other factors.