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

Many websites offer a “free reverse mortgage calculator” that allows 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 calculators also detail how consumers can tap into their home equity.  For most borrowers, this means considering 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.

Be cautious of calculators disguised as a lead form

Some lenders appear to provide reverse mortgage calculators on their websites.  However, 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 to avoid receiving annoying follow-up solicitations. 

Here are a few reverse mortgage calculators that don’t require personal info:

Best Reverse Mortgage Calculators (No Personal Information Required)

1.  National Reverse Mortgage Lenders Association (NRMLA) Calculator

Screenshot of National Reverse Mortgage Lenders Association Free 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.

Visit the NRMLA Calculator here.

2.  Free Reverse Mortgage Calculator by All Reverse (No Personal Information Required)

Screenshot of ARLO Free Reverse Mortgage Calculator

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.  Input your zip code, property value, and date of birth to view your eligibility instantly.

You may receive information for the HECM and the jumbo/proprietary programs available if those are also advantageous for you based on your property value. 

For each option, you 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.

You can also choose the loan option they are most interested in based on actual loan charges, best for the long term, etc.  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, as your private information is not asked for nor stored on our website. 

3.  The Retirement Researcher (third-party) calculator

Screenshot of Retirement Researcher 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.



How does a free reverse mortgage calculator work?

A free reverse mortgage calculator utilizes information specific to borrowers to determine how much they can receive from a reverse mortgage.  This includes the age of the youngest borrower or spouse, the estimated home value, the amount of existing lien(s), if any, and the zip code location of the property.  It combines this data with current interest rate options to determine a Principal Limit figure, which is the loan amount someone can receive based on these circumstances.  The interest rate can increase or decrease this figure depending on current market trends.  The lower the rate, the higher the dollar amount that can be borrowed.  Further explanation can be found in my article on

How much money do you get from a reverse mortgage?

The amount of money a borrower receives from a reverse mortgage depends on 4 key factors.  Those factors are their age, home value, existing liens owed, and current interest rates available.  The older someone is, the higher the percentage of the value they can borrow.  Simultaneously, interest rates also factor into this formula.  The lower the rates, the higher the percentage you can receive.

How is reverse mortgage interest calculated?

A reverse mortgage loan does not require any monthly mortgage payment, so the interest is added to the outstanding loan balance monthly.  Interest only accumulates on the actual balance.  If a borrower has an available line of credit, interest does not accrue on that amount.  While the loan program is designed in this matter, this does not prevent a borrower from making voluntary payments of any amount of interest if that is their choice.

What is the current interest rate for a reverse mortgage?

The interest rates for a reverse mortgage loan are subject to change routinely, just like a conventional loan.  As the market fluctuates, so will the rates for a reverse mortgage loan.  A borrower must obtain a current quote from a reverse mortgage lender to obtain a current interest rate.

What is the downside to a reverse mortgage?

One downside of a reverse mortgage is that the property must remain your primary residence.  If you leave your home longer than 12 consecutive months, the servicer can call the loan due and payable.  Your loan balance will increase since a reverse mortgage does not require monthly payments.  If you decide to move and sell your home years after obtaining a reverse mortgage, there is the potential for less equity in the home due to that increasing loan balance.

When does it make sense to get a reverse mortgage loan?

A reverse mortgage makes the most sense when you desire to remain in your home and are looking for additional funds to supplement your income and assist with property expenses such as taxes and insurance, as well as routine maintenance and repairs.

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, no 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 you will see that not all lenders are the same or offer upfront pricing on their calculators.  If you are in the market for a reverse mortgage, please take a moment to stop by our full version of the reverse mortgage calculator and see if the numbers look right for you.

Helpful Calculators Courtesy of ARLO