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Talk with a lender about how a reverse mortgage can benefit you.

* Date of Birth

month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec year 1982 1981 1980 1979 1978 1977 1976 1975 1974 1973 1972 1971 1970 1969 1968 1967 1966 1965 1964 1963 1962 1961 1960 1959 1958 1957 1956 1955 1954 1953 1952 1951 1950 1949 1948 1947 1946 1945 1944 1943 1942 1941 1940 1939 1938 1937 1936 1935 1934 1933 1932 1931 1930 1929 1928 1927 1926 1925 1924 1923 1922 1921 1920 1919 1918

* Estimated House Value:

<amount> $30,000 or Less $30,000 – $39,999 $40,000 – $49,999 $50,000 – $59,999 $60,000 – $79,999 $80,000 – $99,999 $100,000 – $119,999 $120,000 – $139,999 $140,000 – $159,999 $160,000 – $179,999 $180,000 – $199,999 $200,000 – $219,999 $220,000 – $239,999 $240,000 – $259,999 $260,000 – $279,999 $280,000 – $299,999 $300,000 – $319,999 $320,000 – $339,999 $340,000 – $359,999 $360,000 – $379,999 $380,000 – $399,999 $400,000 – $419,999 $420,000 – $439,999 $440,000 – $459,999 $460,000 – $479,999 $480,000 – $499,999 $500,000 – $519,999 $520,000 – $539,999 $540,000 – $559,999 $560,000 – $579,999 $580,000 – $599,999 $600,000 – $619,999 $620,000 – $639,999 $640,000 – $659,999 $660,000 – $679,999 $680,000 – $699,999 $700,000 – $719,999 $720,000 – $739,999 $740,000 – $759,999 $760,000 – $779,999 $780,000 – $799,999 $800,000 – $819,999 $820,000 – $839,999 $840,000 – $859,999 $860,000 – $879,999 $880,000 – $899,999 $900,000 – $919,999 $920,000 – $939,999 $940,000 – $959,999 $960,000 – $979,999 $980,000 – $999,999 $1,000,000 – $1,249,999 $1,250,000 – $1,499,999 $1,500,000 – $1,749,999 $1,750,000 – $1,999,999 $2,000,000 – $2,249,999 $2,250,000 – $2,499,999 $2,500,000 – $2,749,999 $2,750,000 – $2,999,999 $3,000,000 – $3,499,999 $3,500,000 – $3,999,999 $4,000,000 – $4,499,999 $4,500,000 – $4,999,999 $5,000,000 – $5,499,999 $5,500,000 – $5,999,999

Mortgage Balance

No Mortgage $1 – $30,000 $30,000 – $39,999 $40,000 – $49,999 $50,000 – $59,999 $60,000 – $79,999 $80,000 – $99,999 $100,000 – $119,999 $120,000 – $139,999 $140,000 – $159,999 $160,000 – $179,999 $180,000 – $199,999 $200,000 – $219,999 $220,000 – $239,999 $240,000 – $259,999 $260,000 – $279,999 $280,000 – $299,999 $300,000 – $319,999 $320,000 – $339,999 $340,000 – $359,999 $360,000 – $379,999 $380,000 – $399,999 $400,000 – $419,999 $420,000 – $439,999 $440,000 – $459,999 $460,000 – $479,999 $480,000 – $499,999 $500,000 – $519,999 $520,000 – $539,999 $540,000 – $559,999 $560,000 – $579,999 $580,000 – $599,999 $600,000 – $619,999 $620,000 – $639,999 $640,000 – $659,999 $660,000 – $679,999 $680,000 – $699,999 $700,000 – $719,999 $720,000 – $739,999 $740,000 – $759,999 $760,000 – $779,999 $780,000 – $799,999 $800,000 – $819,999 $820,000 – $839,999 $840,000 – $859,999 $860,000 – $879,999 $880,000 – $899,999 $900,000 – $919,999 $920,000 – $939,999 $940,000 – $959,999 $960,000 – $979,999 $980,000 – $999,999 $1,000,000 – $1,249,999 $1,250,000 – $1,499,999 $1,500,000 – $1,749,999 $1,750,000 – $1,999,999 $2,000,000 – $2,249,999 $2,250,000 – $2,499,999 $2,500,000 – $2,749,999 $2,750,000 – $2,999,999 $3,000,000 – $3,499,999 $3,500,000 – $3,999,999 $4,000,000 – $4,499,999 $4,500,000 – $4,999,999 $5,000,000 – $5,499,999 $5,500,000 – $5,999,999

Determining Your Loan Amount

It may help you to first understand how the Reverse Mortgage calculations are done:

• To begin with, you must select which Reverse Mortgage program you wish to obtain (see below). The different HECM Reverse Mortgage programs yield different amounts of money.
• Your Reverse Mortgage lender will determine your actual loan amount by using the value of your home, prevailing interest rates, the amount of any outstanding loans against your house and your age.
• However, there is a maximum loan amount – a loan limit – which is determined by law.

  • On Nov. 6, 2008 the Department of Housing and Urban Development (HUD) increased the loan limit on the Home Equity Conversion Mortgage (HECM) to $417,000 in almost all areas of the country. Later, the Economic Stimulus Bill passed by Congress in early 2009 increased the loan limit to $625,500. The $625,500 loan limit is in effect until Dec. 31, 2010 unless further extended.

    The increases were designed to help seniors access more of their home equity to fund retirement expenses during the economic crisis.

Available Reverse Mortgage Programs

As of October 4th, 2010, there are two different HECM Reverse Mortgage programs available to seniors: The HECM Standard, and the HECM Saver programs. The HECM Standard is the original reverse mortgage program, while the Saver is a new program designed to require fewer fees in exchange for offering less money overall. This new program exists alongside the Standard HECM reverse mortgage, and offers seniors options they previously did not have. On average, seniors will receive roughly 10-15% less money from a Saver program than from a Standard program, but their fees may be reduced by as much as 50% overall.

Options for Taking Your Reverse Mortgage Money

You have options for how you wish to receive the available money from your home – cash, monthly income, a line of credit, or any combination of these payouts.

Cash

Cash is cash – nothing tricky about it. A Reverse Mortgage enables eligible home owners to take out cash, in a lump sum, from their home equity.
This cash can be used for ANY purpose. Although you make no payments, interest charges accrue to the total loan amount every month you carry the Reverse Mortgage. Therefore, total size of your loan will increase over time, though the total amount owed can never exceed the value of your home.

Monthly Income

Opting to receive monthly income from a Reverse Mortgage is similar to purchasing an annuity.

You can usually opt for "Tenure" or lifetime option for the monthly income. However, some lenders can also offer "term" options. A term option means that you will receive monthly income for a predetermined amount of time. With the term option you would likely receive a higher sum of money each month than you would receive with a lifetime or tenure option. To determine what income you could receive with a term option, contact a lender.

Be advised that you cannot take the money from a Fixed-rate reverse mortgage in a monthly payment.

Credit Line Option

A credit line is money that you have available for use on anything at anytime. A credit line differs from cash in that you only accrue interest charges on the money that you use, not on the amount available to you.

For example, if you had $50,000 available to you with the cash option on a Reverse Mortgage, you will have $50,000 available to you as a line of credit. The difference is that if you only wanted to spend $10,000 during the first year of your reverse mortgage, you would only accrue interest on the $10,000, not on the $50,000 available to you. The total loan would grow more slowly than a lump sum option. In addition, the credit balance available should increase monthly for the life of the loan.

A credit line is the most popular and in most cases the most cost efficient option for receiving a Reverse Mortgage loan because you choose how much money to take and when you want it. Interest is only paid on the costs of the loan and the amount you’ve taken out while the balance available continues to grow. Credit lines are especially popular for those seniors with a HECM Saver program, as the reduced fees further cuts the cost of the program, which cuts the initial interest charged on the money.

You cannot establish a line of credit on a Fixed-rate reverse mortgage.

You Can Design a Reverse Mortgage Payout to Best Meet Your Needs

You can choose to combine the types of payouts on your Reverse Mortgage to meet your unique needs and efficiently use your funds. For example, you could receive half cash, a quarter monthly income and a quarter of the money in a line of credit. Deciding between the HECM Standard and Saver programs can further customize the type of Reverse Mortgage right for you.

A Reverse Mortgage lender could help you design a program to meet your unique needs.

For an official estimate, contact a Reverse Mortgage lender by completing our information request form.

Still have questions about the Reverse Mortgage calculator? Call us at 866-441-0246.