All Reverse Mortgage, Inc. (ARLO™) has created a new reverse mortgage amortization calculator that helps you understand how your loan will change over time.

With the amortization calculator below, you can:

• Choose how much to borrow or repay.
• Instantly see how this affects your loan balance and credit line.
• Adjust for future interest rates, home value changes, and payment plans.

Welcome to our Reverse Mortgage Amortization Calculator

NOTE: Drop us a comment below if you want a copy of this amortization calculator, which is available as an Excel file.

Benefits of Making Payments on a Reverse Mortgage

Have you considered the advantages of a reverse mortgage compared to a traditional loan? Do you consider reverse mortgages a last resort option?  If you believe getting a reverse mortgage means losing all your home equity, it’s time to rethink.  A reverse mortgage can offer benefits that go beyond those of traditional loans.

One important feature of reverse mortgages is that there are no prepayment penalties.  This means you can make payments anytime without being required to.  You can get a reverse mortgage that doesn’t require monthly payments, but you can still choose to make payments to reduce your loan balance over time.

Homeowners can make partial repayments in different ways.  Some choose to pay an amount each month that keeps the loan balance the same as when they first borrowed. Others pay more, aiming to fully repay the loan eventually.  This flexibility allows you to manage your finances in the best way for you.

Now, one might ask:

Why would I get a Reverse Mortgage if I am going to make payments?

People across the country are increasingly opting for reverse mortgages for various reasons.  Compared to traditional loans, reverse mortgages have more lenient qualification criteria regarding income and credit requirements.

Individuals on a fixed income or those unable to traditionally verify their income might find it challenging to qualify for a conventional loan.  However, the current guidelines for reverse mortgages do not impose income requirements, and the credit criteria are minimal, making it significantly easier to qualify for this financial product.

And there is another very important reason people like to use a reverse mortgage even when they intend to make payments. There is never a monthly payment required, meaning you can make a payment when or if you want, in the amount you want, or not at all. You choose when the timing is right or convenient for you to make a payment.

This is huge for people who have fluctuating incomes or expenses. Or if it is just not convenient for you to make the payment in any given month due to life events such as family emergencies, birthdays, anniversaries, graduations, births of grandchildren, needed repairs, vacations, or whatever life throws at you, you can skip it any time you decide to, and there are no negative consequences. If you skip payments on a forward loan, it can adversely affect your credit or worse.

Amortization FAQs