HECM Reverse Mortgage Calculator
Our free calculator offers you an instant online estimate with a full, in-depth analysis via phone or email.
Reverse Mortgage Calculator
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†Longbridge’s Military Discount Program is subject to change or cancellation at any time and without notice. This program offering is valid for a credit of up to $500.00 off allowable closing costs. This program offering can only be redeemed with Longbridge Financial LLC, and is available to U.S. military veterans, their spouses, and the spouses of deceased veterans. Documentation of military service is required; acceptable documents include DD214 Discharge papers, VA / military identity card, VA benefits summary/award letter for income, and the VA benefits letter. Loans must close and be funded with Longbridge Financial LLC as the lender in order to receive credit. The credit will be applied to the overall cost indicated on the HUD-1 Settlement Statement at the time of the closing. This offer is not available for Home Equity Conversion Mortgage for purchase transactions. This is not an offer to make you a loan, does not qualify you for a loan, and is not an official loan disclosure. Loan disclosures, including a Good Faith Estimate of closing costs, are provided upon receipt of a completed application. All loans are subject to approval. Program, rates, and additional terms and conditions apply and are subject to change without notice. Offer is not transferrable. This offer is not redeemable for cash or cash equivalents. Void where prohibited, taxed or restricted by law. Restrictions apply.
Reverse Mortgage Calculator – How It Works
To calculate your loan estimate, our calculator uses the following information:
- Your age. Applicants must be at least 62 years old to qualify for a reverse mortgage. In most cases, as you get older, the percentage of your home equity which you can borrow increases.
- Your home’s value. This is how much your home is worth in today’s market. If you’re not sure, use your best guess or enter your address to get an estimate from Zillow.com. This will compare your home to those which have recently sold in the area along with other factors.
- Total outstanding loans against your house. Including all mortgages and liens, these loans must be the first items paid off when receiving reverse mortgage proceeds. All remaining money can be used any way you would like. Unlike a traditional mortgage, a reverse mortgage does not require monthly mortgage payments. Keeping up with property taxes, insurance, and maintenance is required.
- Current interest rates. As rates naturally fluctuate, they impact the percentage of your home equity which you can borrow—for example, the lower the interest rate, the more cash that’s available.
- Maximum loan amount. For a standard Home Equity Conversion Mortgage (HECM), the maximum loan amount cannot exceed that allowed by the Federal Housing Administration (FHA). If the value of your home exceeds the lending limit, there are private, non-FHA reverse mortgages available with all the borrower benefits and safeguards of a standard HECM—such as Longbridge Platinum. The reverse mortgage calculator will provide you with all available options based on the information you enter.
What Your Calculator Results Mean
After entering your details into the calculator, you will be presented with three main numbers to review. The first is the estimated mortgage payoff amount (if applicable). The second is the total amount in loan proceeds that may be available to you. This number includes the amount of funds available at closing along with the portion available after 12 months (FHA Rule). Lastly, you will see your equity reserve, the amount of equity still remaining in the home, when you close your loan, after receiving the funds from your reverse mortgage.
Our calculator will also provide a projected credit line growth chart.2 This chart shows how much additional money will be available in the years to come. To calculate the HECM credit line growth rate, the initial interest rate (IIR) is added to the annual MIP rate. For example, if your initial interest rate is 3.50% and the MIP rate is 0.50%, the growth rate of your available line of credit would be 4.00%. This line of credit growth is only offered via the variable-rate reverse mortgage.
One important thing to note, the calculator is just an estimate and does not include loan costs, lender credits or other programs that you may be eligible for. That’s why speaking to one of our reverse mortgage consultants is important. They can provide a more in-depth analysis based on your unique situation even without having to apply.
Remember, one of the factors that the reverse mortgage calculator results are based on is an estimate of your home’s value. As with a traditional mortgage, your home will be appraised during the application process. If your home value differs from what you thought it may be worth, you may be eligible for more or less proceeds than provided by the calculator’s estimate.
HOW CAN I USE A REVERSE MORTGAGE?
A reverse mortgage loan lets you use your home equity to help you improve your financial situation and achieve peace of mind. The income tax-free cash3 you get from a reverse mortgage can allow you to eliminate monthly mortgage payments4, keep more money on hand to meet everyday expenses, consolidate credit-card debt, help with healthcare costs—or be used for any other purpose that suits your lifestyle.
Check out our blog for 10 ways you can use reverse mortgage proceeds.
HOW DO I KNOW IF A REVERSE MORTGAGE IS RIGHT FOR ME?
Before you apply for a reverse mortgage, a Longbridge consultant can assess your financial situation and help you decide—along with your trusted advisors—which reverse mortgage solution is right for you. Not all lenders make that commitment.
WHAT ARE MY NEXT STEPS?
After receiving an estimate from our reverse mortgage calculator, you will be contacted by a Longbridge Financial loan officer. We’ll get to know you, your goals, your home, and your finances as we discuss your options. Our goal is to close your loan within 45 days of receiving your application and counseling certificate—and we’ll make every effort to close even sooner.
You can read more on what to expect from the reverse mortgage process, here.
WHY CHOOSE LONGBRIDGE?
Longbridge Financial is an approved lender with the Federal Housing Administration (FHA) and maintains an A+ rating with the Better Business Bureau. We make customer service our highest priority and feel so strongly about going above and beyond to ensure your total satisfaction, that we’ve put our list of commitments in writing.
Here’s what people like you are saying about us.
Longbridge’s Military Discount Program is subject to change or cancellation at any time and without notice. This program offering is valid for a credit of up to $500.00 off allowable closing costs. This program offering can only be redeemed with Longbridge Financial LLC, and is available to U.S. military veterans, their spouses, and the spouses of deceased veterans. Documentation of military service is required; acceptable documents include DD214 Discharge papers, VA / military identity card, VA benefits summary/award letter for income, and the VA benefits letter. Loans must close and be funded with Longbridge Financial LLC as the lender in order to receive credit. The credit will be applied to the overall cost indicated on the HUD-1 Settlement Statement at the time of the closing. This offer is not available for Home Equity Conversion Mortgage for purchase transactions. This is not an offer to make you a loan, does not qualify you for a loan, and is not an official loan disclosure. Loan disclosures, including a Good Faith Estimate of closing costs, are provided upon receipt of a completed application. All loans are subject to approval. Program, rates, and additional terms and conditions apply and are subject to change without notice. Offer is not transferrable. This offer is not redeemable for cash or cash equivalents. Void where prohibited, taxed or restricted by law. Restrictions apply.
If part of your loan is held in a line of credit upon which you may draw, then the unused portion of the line of credit will grow in size each month. The growth rate is equal to the sum of the interest rate plus the annual mortgage insurance premium rate being charged on your loan. Borrowers who elect a fixed rate loan will receive a single disbursement lump sum payment. Other payment options are available only for adjustable rate mortgages.
Consult a financial advisor and appropriate government agencies for any effect on taxes or government benefits.
As with any mortgage, you must meet your loan obligations by keeping current with property taxes, insurance, and maintenance.
