The Internet is an excellent tool for consumers to research many lending products. But it is essential to be selective when researching financial products and seek advice from a trusted resource. Reverse mortgages are no exception. 

Many websites offer “free reverse mortgage calculators” that allow consumers to enter the home and personal information and calculate whether they’re eligible for a loan and, if so, how much of their home’s equity they’d be able to access.

Some reverse mortgage calculators also detail how consumers can tap into their home equity. For most borrowers, this means considering either a fixed or adjustable rate forward or conventional loan or using the home equity conversion mortgage (HECM) reverse mortgage, which the Federal Housing Administration insures.

For some, it also means considering one of the private/proprietary or jumbo reverse mortgage programs if the individual lives in a higher-valued home and wishes for a reverse mortgage that will accommodate a larger loan amount than the government programs. The calculators typically break down how much a borrower would get if they receive their reverse mortgage funds in a lump sum, a monthly payment, or a line of credit.

Many lenders provide calculators on their websites, but some are hosted by third parties who may pass information to lenders, and some are more intrusive to borrowers about information requirements. It’s important to use caution when these sites ask for your contact information if you do not want to receive any follow-up information.

Here are several free reverse mortgage calculators that can help you decide if reverse mortgage suits you.

1. National Reverse Mortgage Lenders Association (NRMLA) Calculator

This calculator from the trusted lender ethics advocacy organization is simple: consumers enter their zip code, slide the bar to the youngest borrower’s age, and add their home’s value. The calculator then delivers a rough estimate for money available to the borrower(s) on an annual adjustable loan, a monthly adjustable loan, and a fixed rate option.

You can make some minor changes, but the options are limited, and a lender does not supply the calculator, so it must assume rates and fees that may be higher or lower than those available.

This makes it an excellent place to start, but you may need an accurate picture of what is available to you for your circumstances.

2. FREE ARLO™ Reverse Mortgage Calculator (Light Version / No Personal Information Required)

Consumers are asked to enter their zip code, mortgage balance (if any), home value, name, and date of birth for themselves and any co-owners. After you put your information into ARLO (All Reverse Loan Optimizer), we will both send and display several options tailored to your circumstances.

You may receive information for the HUD HECM programs and the jumbo or private programs available if those are also advantageous for you based on your property value. For each option, a consumer can check out loan details that break down finance fees for origination costs (which vary depending on the type and rate of the loan) and amortization schedules going up to 20 years.

Prospective borrowers can choose the loan option they are most interested in based on actual loan charges for their location. If you are not interested, All Reverse will not aggressively contact you to try to “sell you” on a product you have determined is not right.

3. The Retirement Researcher (third-party) calculator

This generic calculator requires borrowers to input many loan terms and their specific age and property information. It will also inform borrowers about HUD factors determining the amounts borrowers can receive before costs and other considerations.

It does not compute the costs or interest rates; the borrower must know these to use this calculator. This calculator will allow borrowers to add parameters such as set aside amounts required for repairs or due to income or credit requirements. Still, it cannot tell you if you will need one or the amount if that becomes necessary.

Again, the borrower must know that information to use this calculator properly. This calculator cannot show you the costs of any lender, so while it may help borrowers understand the basics of the programs, it will not allow them to shop for the loan and gives no information about programs other than the HUD HECM products.

Calculator FAQs 

Summary: Which Calculator is Best?

All these calculators can be helpful. We believe that the All Reverse Loan Optimizer (ARLO) by All Reverse Mortgage, Inc. is the best for borrowers shopping for a reverse mortgage because it allows them to receive real numbers in real-time with accurate costs matter where they live in the country.

You can modify your information so that the proposal you receive meets your needs and comes with current rates and fees offered by All Reverse Mortgage, Inc. You never need to supply your social security number to receive your information, and if you do not wish to be contacted, all you need to do is let us know, and we will respect your wishes.

We will never hound you just because you visited our site, but we will always be ready to assist you if you desire. Our calculator includes information for the HUD Home Equity Conversion Mortgage (HECM), the government-insured reverse mortgage, and the jumbo or private programs for homes with values exceeding the HUD maximums.

And unlike some companies, we will send you a written proposal so you can compare. We will not give you just a partial list of costs to make things look better (some leave out HUD fees or title fees on their initial proposals) but a complete list of every known cost so you can compare.

We encourage you to shop around and compare, and we believe you will see that not all lenders are the same or have their calculators. If you are in the market for a reverse mortgage, please take a moment to stop by ARLO’s online calculator and see if the numbers look right for you.

Helpful Calculators Courtesy of ARLO 

• Amortization Calculator with Excel File – Free Excel file download, which you may run unlimited “what if” scenarios. E.g., change in future interest rates, change in appreciation rates, etc.
• Line of Credit Growth Rate Estimator – Estimates the line of credit growth rate illustrating compound growth with a personalized future withdrawal simulator.
• HECM Purchase Calculator – Estimate your down payment & loan terms for a new home purchase.
• HECM Refinance Calculator – Access this calculator to estimate a refinance of your existing loan.