Reverse Mortgage Calculator

When you’re looking into a reverse mortgage, you should have numbers you can rely on, backed by a HUD-approved direct lender with more than 20 years of experience helping older homeowners make informed decisions.

Most online calculators leave out the details that matter most to you.  They don’t show the actual interest rate you may receive, the real APR, or the closing costs based on where you live.

Our reverse mortgage calculator, powered by ARLO™, was built to change that.  It gives you accurate, lender-verified results in real time.  ARLO™ helps you understand your eligibility, compare reverse mortgage options side by side, and see which program best fits your goals before you ever pick up the phone.

Here’s what makes our calculator different:

Because the calculator uses the same pricing engine we use for live loan scenarios, your results match exactly what you would receive from our team.

• Real-Time Rates and APR
  Updated daily with both fixed and adjustable options.

• Accurate Closing Costs by ZIP Code
  No generic numbers.  You see the actual fees for your loan.

• Smart Loan Matching
  Based on your input, the calculator shows which programs fit your goals, including both HUD-insured HECM options and jumbo programs.

• Side-by-Side Comparisons
  Review HECM, jumbo, and proprietary loans together and compare payout options like a lump sum, monthly payments, or a line of credit.

• Custom Inputs
  Adjust the loan amount, interest rate, monthly advances, and more to reflect your actual plan.

• Amortization Breakdown
  See how your loan balance and home equity may change each year.

How to Use the Calculator (Step-by-Step)

• Enter Your ZIP Code – ARLO™ checks HUD lending limits and state-specific fees.
• Confirm Your Home Value – Uses online property value data with the ability to manually adjust higher or lower if necessary.
• Add Age, Mortgage Balance & Annual Interest Rate – Essential reverse mortgage inputs to calculate your potential loan amount and available proceeds.  Be sure to enter the annual interest rate for accurate results.  If you have a co-borrower, enter their age as well to ensure eligibility and precise calculations.
• Enter All Relevant Reverse Mortgage Inputs – Include age, home value, mortgage balance, annual interest rate, and desired loan features to customize your scenario.

Compare Reverse Mortgage Options — Side by Side

Our calculator lets you compare several scenarios at once so you can choose what truly supports your retirement plans.  You can look at lump-sum payouts, steady monthly payments, or a growing line of credit and decide which draw strategy fits your needs and comfort level.

Every homeowner’s goals are different, so the calculator also shows how each type of reverse mortgage affects your available funds, interest, costs, and long-term equity.

1. 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 total amount of money you can access.  With this option, you receive a lump sum advance as your starting balance, which you can receive immediately when the loan closes.

 

2. Grow Equity Over Time (Lower Interest)

If your goal is to preserve 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 slower than other reverse mortgage options, helping you preserve more of your home’s equity 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 retaining more equity.

 

3. Lowest Upfront Costs

If your goal is to keep your upfront expenses as low as possible, this option helps you compare exactly how much you can save. It’s designed for homeowners who care more about minimizing closing costs than maximizing their loan amount. By choosing this route, you can reduce the financed origination fee and other upfront charges that would otherwise be added to your loan balance and accrue interest over time.

Best for: Homeowners who expect a shorter time horizon or simply want to limit the amount of closing costs rolled into the loan.  

4. Fixed-Rate Lump Sum Option

This option gives you a fixed interest rate that never changes, which can be reassuring if stability is your priority.  At closing, you receive your funds as a single lump sum, and the rate remains locked in for the life of the loan.

There are no monthly payments or a credit line with the fixed-rate program, so it’s important to consider how that fits with your long-term plans.  Adjustable-rate options offer more flexibility and often provide greater access to funds.  Comparing both will help you decide which structure truly supports your goals.

Best for: Homeowners who want a fixed rate and prefer a single lump-sum payout.

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If you’re still exploring, the questions below address the most common concerns homeowners raise when using the calculator.

Frequently Asked Questions

Q.

How does a reverse mortgage calculator work?

A reverse mortgage calculator uses key data points from a prospective borrower’s scenario (Age, Home Value, Amount Owed, Current Rates, etc.) to determine how much money they can receive based on the HUD Principal Limit Factors.

Q.

Are all reverse mortgage calculators the same?

No, all reverse mortgage calculators are not the same.  They will all perform the standard calculations to determine a potential borrower’s eligibility based on the company’s offered rates, but that is where the similarities end.  Lenders do not always offer the same interest rates, and the better the interest rate offered to the borrower, the more money they will be eligible for.  Additionally, there will be variances in the level of detail provided by the calculator, and some calculators are easier to understand than others.

Q.

How much money do you get on a reverse mortgage?

The amount of money that you ultimately get on a reverse mortgage loan will be dependent on multiple factors.  The key factors are: 1.  The current value of your home.  The higher your home’s value, the larger your loan amount will be. 2.  The age of the youngest borrower or spouse.  The older you are, the higher the loan amount will be. 3.  Current interest rates.  The lower the reverse mortgage rate, the higher the loan amount will be. 4.  Amount owed on the home.  The less you owe on your home, the more proceeds you will have available.

Q.

How do interest rates affect the reverse mortgage calculation?

Interest rates play a vital role in many aspects of the reverse mortgage calculations.  There are two key interest rates to consider with a reverse mortgage.  The expected interest rate (Lender’s Margin + 10-year CMT Index) is the rate that affects the initial loan-to-value calculation, as well as the other calculations for monthly payment plans, and for any tax and insurance set aside.  The lower the expected rate, the higher the loan-to-value that you can borrow.  The Initial Interest Rate (Lender’s Margin + 1-year CMT index) is the rate that affects the interest accrual on the loan and the line of credit growth rate.

Q.

How is the line of credit growth rate calculated?

The line of credit growth rate is calculated by adding the Mortgage Insurance Renewal Rate to the Actual loan interest rate.  As of September 2025, the Mortgage Insurance Renewal Rate is 0.50%.  For example, if your current loan rate is 5.50%, your line of credit growth rate is 6.00%.  The actual interest rate on the loan can vary either month to month or year to year.  The Mortgage Insurance Renewal Rate is set in stone once the reverse mortgage loan is closed.

Q.

How is the monthly tenure payment calculated?

The maximum monthly tenure payment a borrower could be eligible for is calculated by using a financial calculator.  It must factor in the Expected Interest Rate, the net Principal Limit (available proceeds to the borrower), and the length of time until the youngest borrower reaches the age of 100.  Sample Scenario: A 70-year-old borrower with a $500,000 home value in California, expecting a 6.125% rate, and no existing mortgages or liens (free and clear).  This hypothetical scenario would result in a Net Principal Limit of $185,497.57 and a maximum tenure payment of $1,181.24.  Whenever a borrower opts for a tenure payment, the payments continue as long as the borrower remains in the property and the loan remains in good standing.

Q.

How is a monthly term payment calculated?

A term payment under a reverse mortgage is a monthly payout for a fixed period, unlike a tenure payment, which continues for life as long as you live in the home as your primary residence and maintain property taxes and insurance.  Borrowers often choose the term option when they want extra income for a set number of years.  For example, to bridge the gap until Social Security or a pension begins.  The monthly term payment amount is calculated using a financial calculator and depends on the expected interest rate, the net Principal Limit (available loan proceeds), and the selected term length.  The shorter the timeframe, the larger the monthly payment; conversely, a longer term reduces the monthly payment.  Importantly, a term payment cannot extend beyond the borrower’s 100th birthday.  If it does, the system defaults to a lifetime tenure payment.  In short, a term payment is best for borrowers who want larger payments for a limited period, while a tenure payment is designed for those who prefer a steady income for life.

Q.

What is the 60% rule for a reverse mortgage?

The 60% rule, often cited in connection with reverse mortgages, pertains to the initial disbursement limit.  The overwhelming majority of reverse mortgage loans are originated under the HECM (Home Equity Conversion Mortgage) program that is insured by HUD (Department of Housing and Urban Development).  The HUD rules limit borrowers to advancing 60% of the total Principal Limit (Loan Amount) at closing or during the first year the loan is in place.  The exception to this rule is if the “Mandatory Obligations” are at 50.01% or higher of the Principal Limit.  Mandatory obligations include all closing costs and any existing lien(s) against the property that must be paid at the time of closing.  When the mandatory obligations exceed that threshold, a borrower is permitted to advance an additional 10% of the Principal Limit (if available) above the mandatory obligations.  For example, if the Principal Limit is $200,000 and the total mandatory obligations are $150,000, the borrower would be able to advance an additional $20,000 at closing or during the first year the loan is in place.

Q.

How much can a 70-year-old borrow on a reverse mortgage?

The amount a 70-year-old can borrow depends on their home’s value and current interest rates.  HUD publishes a Principal Limit Factors table that outlines the recommended loan-to-value ratios for each age at every expected interest rate.  Every 1/8 of a percentage point (0.125%) change in the expected interest rate will alter the loan-to-value ratio.  The best-case scenario for a 70-year-old borrower would be a 57.6% loan-to-value ratio, which would require an expected interest rate of 3% or lower.  3% is the absolute floor for the calculations.  On the flip side, the table goes up to 18%, and at an 18% expected rate, a 70-year-old borrower could get a 70-year-old borrower could get 11.3% loan-to-value.  As of November 2025, expected interest rates range from 5.75% – 6.25%.  At a 6.00% expected rate, a 70-year-old could borrow 41.5% loan-to-value.