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

Need an Excel version?  Download the full amortization calculator as an Excel file here.

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 they do not have prepayment penalties.  This means you can make payments at any time 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 enables you to manage your finances in the most effective 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.

Qualifying for a reverse mortgage is generally easier than for a traditional forward loan, but there are income and credit guidelines.  Reverse mortgages don’t use the strict debt-to-income ratios that conventional loans require.  Instead, lenders apply a residual income test, making sure you have enough money left over each month, after typical living expenses, to cover property charges like taxes, insurance, and maintenance.

Even if your income is lower, there are flexible ways to qualify.  For example, you can offset a shortfall in residual income with certain compensating factors, such as strong credit history, significant cash reserves, or by setting aside a portion of the loan to pay property charges.  This approach is often far more manageable for homeowners on fixed incomes compared to the rigid ratio requirements of conventional mortgages.

Tip: Not sure if you’ll meet the residual income test?  At All Reverse Mortgage, we can run a quick, no-obligation review using your actual income and expenses.  We’ll show you if you qualify as is or explain simple options, such as setting aside funds, to help you meet the requirement and move forward with confidence.

See How Your Reverse Mortgage Grows or Shrinks Over Time.  Whether you’re planning to make monthly payments or want to track how interest affects your equity, ARLO™ puts you in control.  Our amortization calculator shows how your loan evolves, with or without repayments.  Call us Toll-Free at (800) 565-1722 to speak with an expert, or use our reverse mortgage amortization calculator to explore every option—clear, flexible, and designed to fit your retirement.

Frequently Asked Questions