Free Reverse Mortgage
How much equity can you access with a reverse mortgage?
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Lower Rates **Based on data reported by lenders to the U.S. Dept. of Housing & Urban Development. Among the top HECM lenders (minimum of 100 loans), GoodLife Home Loans had the lowest adjustable rates on average for the period from January 1 through December 31, 2020.
Several factors influence how much money you may be able to receive through a reverse mortgage, including the age of the youngest borrower, the value of your home, your existing mortgage balance, and current reverse mortgage interest rates.
Use our reverse mortgage calculator to see how you may be able to significantly increase your cash flow.
By speaking on the phone, we can upgrade the estimate into a more precise loan summary customized to your circumstances—free of charge.
Reverse Mortgage Loan Calculator FAQs
How do I use the calculator?
Age: Indicate your age and your spouse’s age, if applicable. We’ll consider the younger of the two when determining the size of the loan you may eligible to borrow. Generally speaking, the older you are in age, the more home equity you’ll be able to access through a reverse mortgage. Note: you must be at least 62 years old to qualify. If you have a spouse who is younger than 62, ask us about the new exception that may change your eligibility.
Home Value: Tell us how much you roughly believe your home to be worth. If you haven’t had a recent home appraisal, you can provide your best guess, or for a more accurate quote, submit your address so we can pull an estimate from Zillow.com.
How does the reverse mortgage calculator work?
Knowing how much you can expect from a reverse mortgage might help you prepare for the future, so you can enjoy retirement, free of financial stress. We love educating our customers about how a reverse mortgage can be used as a powerful tool to leverage home equity, and we’ll help you evaluate whether a reverse mortgage is the right solution for your specific goals.
How much home equity is required for a reverse mortgage?
The portion of equity a borrower may tap into is dependent on several factors, including their age, the home’s appraised value, and the interest rate of the loan.
How is interest calculated on a reverse mortgage?
Interest rate calculations differ depending on whether the rate is fixed or variable. A fixed interest rate is determined at the time of the loan initiation. Variable interest rates are composed of two values: the index and the margin. The index is a standard rate that fluctuates with the market; the margin, which never changes, is set by the lender then added to the index to arrive at the total interest rate applied to the loan.
Our customers have saved thousands compared to leading competitors in the reverse mortgage industry.
Based on data reported by lenders to the U.S. Dept. of Housing & Urban Development. Among the top HECM lenders (minimum of 100 loans), GoodLife Home Loans had the lowest adjustable rates on average for the period from January 1 through October 31, 2020.
What are the costs associated with a reverse mortgage?
There are several types of costs that may be deducted from your available loan proceeds, such as the appraisal fee, origination fee, and the initial mortgage insurance premium. Borrowers may also be charged for expenses incurred by a third party at the time of close such as, a credit report fee, flood certification fee, escrow closing fee, document preparation fees, recording fees, courier fees, title insurance, pest inspection, and property survey.
Ongoing costs associated with a reverse mortgage include the lender’s servicing fee and mortgage insurance. Borrowers must also keep up with property taxes, applicable Homeowner’s Association (HOA) fees, and any other financial obligation that could result in a lien on the property. They must also maintain the home’s safe, working condition to the minimum standards established by the Federal Housing Administration (FHA). Speak with your loan officer to determine if these fees apply.
Reverse Mortgage Payment Terms
You Should Know
Reverse mortgage tenure payment
A tenure plan disburses the loan proceeds in fixed, monthly payments. The borrower will receive the same amount for as long as they live in their home as a primary residence, which can be a helpful tool when budgeting in retirement
Reverse mortgage lump sum
A lump sum is a large cash payout that a borrower may elect to receive after the reverse mortgage is funded and all closing costs have been settled. In this case, the borrower chooses to pull the maximum available amount of equity upfront in the form of cash loan proceeds
Reverse mortgage line of credit growth
A line of credit grows when the amount of money available within a credit line increases based on the annual growth rate. To calculate the annual growth rate, add the interest rate to the annual mortgage insurance premium (MIP) rate.
Reverse mortgage loan origination fee
The origination fee is what the lender charges for processing the loan and the cost will depend on the appraised value of the home. Lenders can charge the greater of $2,500 or 2% of the first $200,000 of a home’s value, in addition to 1% of any amount over $200,000.