Reverse Mortgage Calculator
With ARLO™ by your side, reverse mortgage calculations aren’t just about the numbers. Think of it as having a trusty ‘retriever’ to find your best reverse mortgage.
Features at a Glance:
- Instant loan comparisons
- Real-time interest rates, APR & cost estimates
- Side-by-side amortization schedules
This lets you quickly compare and choose the most fitting program based on rate and costs.
Interactive Advice: Empower yourself with a robust toolset. It’s designed to spotlight the top reverse mortgage program tailored to your unique needs.
Trusted and Free: 100% Free, no Social Security Number required. Dive in and discover the reverse mortgage program options as they apply to your circumstances made simple!
Step 1: Input your zip code
Kick-start your journey by entering your zip code. Why? ARLO™ uses this knowledge to fetch precise 3rd party closing costs tailored to your area. This includes vital components like title fees, recording charges, and potential local taxes. Bear in mind the closing costs for a reverse mortgage aren’t uniform; they fluctuate based on location. This is true of fees linked to title insurance/searches, appraisals, and local governance.
Step 2: Input your age
Sharing personal details, especially age, can be delicate for many. But here’s the rationale: The core calculation of your reverse mortgage potential hinges on the age of the youngest borrower. By providing this, you’re ensuring the utmost accuracy in the results.
The borrower’s age influences the loan amount for a reverse mortgage. If your next birthday is within six months of finalizing your loan, this will warrant a higher loan amount.
Step 3: Dive into your analysis
Our calculator provides a range of options for borrowers to choose from. It is important to carefully review these options and consider which best suits your needs. Your loan officer can help you understand the pros and cons of each option and answer any questions you may have.
It is important to remember that the loan officer’s role is not to “sell” you on any particular program or option but to provide you with the information you need to decide which option is best for you. Take the time to thoroughly review your options and consider which one is most appropriate for your unique situation.
Important user tips:
- Spouse’s Age Matters:
- Always put your spouse’s age in the calculator, even when below 62, unless that spouse does not, has never, and will not live in the home.
- Remember: The younger spouse’s age is crucial. It determines the loan amount of the reverse mortgage.
- Mortgage Balances:
- Be sure you include all mortgage balances for precise net proceeds.
- Have a home equity line of credit (HELOC)? Include this balance in the mortgage payoff.
- Let us know if you used the loan to take cash out of the property less than 1 year ago.
- Timing Your Reverse Mortgage:
- Close to a birthday? If you are within 6 months of your next birthday, the calculator uses the principal limit factor for the higher age of your upcoming birthday, giving you more money with your loan.
How does the HECM calculator work?
Are all reverse mortgage calculators the same?
Do interest rates affect the reverse mortgage amount?
How is the credit line growth rate computed?
What is the formula for a monthly payment?
Are HECM loans calculated differently than proprietary or jumbo reverse mortgages?
Additional calculators courtesy of All Reverse Mortgage: