How to Use a Reverse Mortgage Calculator

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A reverse mortgage calculator is a great tool to determine how much you may be able to get from a reverse mortgage loan. However, even though you may be able to finance a greater amount when using a reverse mortgage calculator, you will still need go through the application process and credit counseling before you can qualify for a reverse mortgage. Additionally, you need to keep in mind that interest rates change, and your calculation is just an estimate.

When using a reverse mortgage calculator, it is important to use one that will give you estimated loan amounts for all three major types of reverse mortgage programs. The three major types of reverse mortgage programs today are FHA loans, HECM (Home Equity Conversion Mortgage), and the Home Keeper Mortgage from the Fannie Mae Foundation. When calculating a loan amount for each reverse mortgage program, the best place to find a reverse mortgage calculator will be found from nonprofit websites not affiliated with any of these reverse mortgage companies.

Before you use a reverse mortgage calculator, you will first need to gather some information. While entering exact information is not necessary, you will find that, the more accurate the information is that you input, the more accurate your estimated loan amount will be.

Be ready to input into the calculator your birth date, the birth date of your spouse, your estimated home value, and your zip code when considering any reverse mortgage program. In addition, to further see what loan amount you can qualify for, you can give even more information such as if there are any liens on the home, your current monthly mortgage payments, any upfront cash amount that you may want or need, the estimated cost of repairs that you may want to fund with the loan and your desired credit line amount.

The more information you input and submit to the reverse mortgage calculator, the clearer the information will be about the loan types and amounts that you may qualify for. This will give you a starting point for discussion with a credit counselor when considering a reverse mortgage program.