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Michael G. Branson, CEO of All Reverse Mortgage, Inc., and moderator of ARLO™, has 45 years of experience in the mortgage banking industry. He has devoted the past 20 years to reverse mortgages exclusively. (License: NMLS# 14040) |
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All Reverse Mortgage's editing process includes rigorous fact-checking led by industry experts to ensure all content is accurate and current. This article has been reviewed, edited, and fact-checked by Cliff Auerswald, President and co-creator of ARLO™. (License: NMLS# 14041) |
Michael G. Branson
Cliff AuerswaldHow Our Reverse Mortgage Calculator Gives You Accurate, Personalized Results
Get your quote instantly with real-time rates (APR) and actual closing costs, with no personal information required. Backed by ARLO™, our AI-powered engine, your estimate is accurate down to the penny and personalized based on your age, home value, and location.Key Features:
- Real-Time Interest Rates & APR Stay current with daily updates reflecting today’s fixed and adjustable rate options.
- Location-Specific Closing Costs Get accurate local estimates, including taxes and fees, based on your ZIP code.
- AI-Powered Loan Matching by ARLO™ See the best-fit reverse mortgage options based on your personal inputs.
- Compare Loan Types Instantly Review HECM, jumbo, or proprietary loans side by side.
- Track Loan Balance Over Time Use our amortization tool to see how your equity and balance change year by year.
Step-by-Step Guide: Using the Calculator
Getting your estimate is simple:- Enter Your ZIP Code Helps determine local lending limits and location-specific fees.
- Confirm Home Value ARLO™ uses real-time market data and recent sales in your area to estimate your property’s value instantly. You can also adjust the value manually for better accuracy.
- Provide Your Age and Mortgage Balance These details help calculate your eligibility and estimate your available proceeds.
Compare Reverse Mortgage Options—Side by Side
Our calculator provides clear, side-by-side comparisons tailored to your needs:Max Cash Out (Highest Payout)
This option allows you to receive more cash over time than any other reverse mortgage product available. It’s designed to maximize the amount of money you can access. Best for: If your primary goal is to maximize the amount of money you can receive from your reverse mortgage, this is likely the best option for you.
Grow Equity Over Time (Lower Interest)
If your goal is to retain as much equity in your home as possible while still having a safety net for emergencies, this option may be the right fit. With this plan, the loan balance grows more slowly than other reverse mortgage options, helping you keep more of your home’s value over time. You can review the amortization schedule to see how this option works to preserve equity year after year. It’s a wise choice for homeowners who want peace of mind knowing they’re borrowing conservatively. Best for: Homeowners who want access to funds but value leaving more equity for later.
Lowest Upfront Costs
If your main priority is keeping financed closing costs as low as possible, this option may be the best fit for you. It’s designed for homeowners who are more interested in minimizing expenses than in getting the maximum loan amount. Most fees and costs are financed in the loan itself, meaning you may have little — or even no — out-of-pocket expenses. Best for: Homeowners with a shorter-term outlook who want to limit financed closing costs.
Fixed-Rate Lump Sum Option
This is a fixed-rate reverse mortgage, which means your interest rate will remain unchanged once the loan is closed. If locking in a stable, unchanging rate is your top priority, this could be the right option for you. With a Fixed Rate loan, you’ll receive your funds as a one-time lump sum payment. There is no credit line or monthly payments available with this option. Keep in mind that, depending on your situation, a Fixed-Rate loan may not offer as much flexibility as an adjustable-rate option. It’s a good idea to compare the available proceeds from both choices before deciding what’s best for you. Best for: Homeowners seeking stability and predictability.
Helpful Tips to Boost Your Reverse Mortgage Payout
These expert tips could increase the amount you receive — or protect your eligibility.- Include a Younger Spouse’s Age: Even if they’re not on the loan, this can enhance protections and sometimes increase proceeds.
- Enter All Current Mortgage Balances: This ensures that your quote accurately reflects the amount you’ll receive after paying off your existing loans.
- Consider Waiting for Your Next Birthday: HUD uses age as one of its factors in calculating your principal lending limit. If you’re within six months of your next birthday, you will receive more funds.
FAQs
Q.
How does a reverse mortgage calculator work?
A reverse mortgage calculator estimates how much you may qualify to borrow based on:
- Your age (or the age of the youngest borrower)
- Your home’s value or the HECM lending limit (whichever is less)
- Current interest rates
- HUD Principal Limit Factors
These factors are used to calculate your “Principal Limit,” which is the maximum amount available through a reverse mortgage. The calculator gives you an accurate estimate of this amount before any official appraisal or application.
Q.
Are all reverse mortgage calculators the same?
No. While all calculators rely on the FHA Principal Limit Factors (based on your age and interest rates), they’re not equally accurate. Many calculators give only rough estimates and don’t show full costs or rate options.
Our calculator is different. It:
- Provides to-the-penny accurate quotes using real-time interest rates.
- Breaks down costs, fees, and rate options for your area.
- Includes an amortization schedule for each rate option, not just one scenario.
Q.
How much money do you get on a reverse mortgage?
The amount you can borrow depends on:
- Your age (older borrowers qualify for more).
- Your home’s value (or the HECM limit of $1,209,750).
- Current interest rates.
- Any existing mortgage balance that must be paid off.
Our reverse mortgage calculator takes into account all of these factors to provide you with a personalized estimate in seconds.
Q.
How do interest rates affect the reverse mortgage calculation?
Higher interest rates reduce the amount you can borrow. FHA sets a “floor rate” of 3%. If rates are at or below this floor, you’ll receive the maximum amount available. As rates rise above 3%, your proceeds decrease because more interest is projected to accrue over time.
Q.
How is the line of credit growth rate calculated?
If you choose a line of credit option, your unused funds grow automatically. The growth rate equals your current interest rate plus 0.5% (the mortgage insurance rate). For example, if your interest rate is 6%, your line of credit grows at 6.5% annually. A $100,000 line of credit would increase by about $541.66 per month ($100,000 x 0.065 ÷ 12).
Q.
How are monthly payments calculated?
Monthly payments depend on:
- Your age and life expectancy.
- The interest rate.
- Whether you choose a Term Plan (set payments for a fixed number of years) or a Tenure Plan (guaranteed payments for as long as you live in the home).
For example, a 15-year Term Plan spreads payments over 180 months, while a Tenure Plan continues for life as long as you stay in the home and keep the loan in good standing. Also See: Reverse Mortgage Payment Options: Term, Ten Year & Tenure Explained
Q.
How is the lump sum calculated?
HUD limits how much you can receive at closing unless it’s a home purchase. Typically, you can take 60% of your Principal Limit, or all required payoffs (like your current mortgage) plus 10% of the limit, whichever is greater. Any remaining funds move into your line of credit (with adjustable-rate loans) and become available after 12 months. Fixed-rate loans are single lump-sum loans with no future draws.
Compare Our Suite of Reverse Mortgage Calculators
| Explore our full suite of tools designed to help you estimate payments, credit line growth, refinance opportunities, home purchase, and long-term loan projections. | |||
|---|---|---|---|
| Calculator Type | What It Does | Key Features | Includes Rates/APR |
| All Reverse Calculator | Figures out payments, lump sums, and credit lines | AI-powered: Recommends the best loan for your goals | Yes |
| Free Quick Calculator | Estimates payments, lump sums, and credit lines | No personal info needed—just a fast estimate | No |
| Line of Credit Calculator | Shows HECM credit line and growth over time | Projects how your credit line grows | No |
| Refinance Calculator | Checks if refinancing your HECM pays off | Uses home value, rates, and 5x benefit rule | No |
| Purchase Calculator | Plans buying a home with a reverse mortgage | Estimates down payment and sale proceeds | Yes |
| Amortization Calculator | Tracks loan balance and equity over years | Downloadable Excel file for your records | Yes |
