What is a reverse mortgage calculator? Why do you need one? A reverse mortgage calculator is useful for estimating how much you can get from a reverse mortgage. But if you want accurate results, it’s important to use an updated and current calculator.
If you’re looking for updated and current reverse mortgage calculators, you’re in the right place! Click here to go straight to our calculators page. If you would like further explanation about reverse mortgage calculators, please read on.
So what is a reverse mortgage calculator and why is it useful? To answer these questions, let’s first start with the basics of how a reverse mortgage works. There is a lot of misinformation out there about reverse mortgages. To understand the calculators, you need to first understand the basics of a reverse mortgage.
What is a reverse mortgage?
A reverse mortgage is a unique home loan that enables seniors 62 or older to convert a portion of their home’s value into cash. The most popular reverse mortgage in America is the FHA-insured home equity conversion mortgage, or HECM (often pronounced heck-um by industry insiders).
You always remain the owner of your home, which means you can leave it to your heirs. Your heirs will inherit any equity remaining in the home.
The HECM is highly versatile, which means you can customize it based on financial goals and needs. You can take the proceeds as a line of credit, lump sum, monthly term or tenure income, or some combination of these options.
Seniors commonly use a reverse mortgage to get rid of existing mortgage or other debt payments, finance home improvements, or supplement existing retirement income or assets.
HECM proceeds vary from one individual to the next. How much you can get depends on your age, home value, current interest rates, and what HECM product you select.
What is a reverse mortgage calculator for?
As you can see, the HECM has multiple moving parts. It’s not a one-size-fits-all loan product. This is why reverse mortgage calculators are useful!
Let’s face it, not everybody wants to listen to a lender’s sales pitch just to find out how much they can get from a reverse mortgage. Online calculators offer answers before you start talking to lenders.
Not all calculators are created equal
It’s important to understand that not all reverse mortgage calculators are created equal. The HECM has changed a lot over the last decade. Many webmasters are unaware of the changes, which means many online calculators are hopelessly out-of-date. It’s important to use an updated and current calculator if you want good results.
Our calculators are maintained regularly. We update the code when HECM lending guidelines change. We also update the interest rates every few days to help ensure you’re getting the most accurate results.
Most online calculators are pretty basic and calculate just the principal limit. We have a basic principal limit calculator too, if that’s what you’re looking for. However, we also have more sophisticated calculators that calculate various payout options, HECM for purchase, and amortizations.
Where to find our reverse mortgage calculators
If you’re ready to find how much you can get from a reverse mortgage, check out our calculator page. Our online calculators are free and easy to use and require no contact information.