Reverse Mortgage Calculator | What is Reverse Mortgage

How to Use a Reverse Mortgage Calculator

A reverse mortgage calculator can give you a good idea of how much you may be able to get from a reverse mortgage. While the fact that you may be able to get a significant amount based on a reverse mortgage calculator, keep in mind that you still must go through the application process and credit counseling before you will be able to obtain a reverse mortgage. Additionally, you will want to keep in mind that interest rates change, and the reverse mortgage calculator is just an estimate.

The best type of reverse mortgage calculator to use is one that will give you estimated loan amounts for all three major types of reverse mortgage programs. The three types of reverse mortgage programs are FHA loans, HECM (Home Equity Conversion Mortgage), and the Home Keeper Mortgage from the Fannie Mae Foundation. The best place to find a reverse mortgage calculator that will provide you an estimated loan amount for all three will be non profit websites that are not affiliated with any type of reverse mortgage in particular.

Before you use the reverse mortgage calculator, there is some information that you will need to gather. While entering exact information is not necessary for this early evaluation step, you will find that the more accurate the information that you input into the reverse mortgage calculator the more accurate your estimated loan amount will be.

You will need to be ready to input your birth date, the birth date of your spouse, your estimated home value, and your zip code. Optional fields that can give you an even more accurate estimate include mortgages and liens on the home, monthly mortgage payments, any upfront cash amount that you want or need, the estimated cost of repairs that you want to fund with the loan, and your desired credit line amount.

When you have entered all of this information and submit it to the reverse mortgage calculator you will receive easy to read information about the loan types and amounts that you may qualify for. This will give you a starting point for discussion with a credit counselor.