The Mortgage Professor
Guiding borrowers to the right decisions
Protecting borrowers from mortgage predators

Reverse Mortgage Calculator

After giving the calculator the information it needs on Step 1, it will help you make the following decisions:   
Step 2:
  • Should I select a fixed-rate mortgage or an adjustable-rate mortgage?
Step 2a (only for adjustable-rate mortgage):
  • What is the best use of my HECM borrowing power as between drawing cash upfront, drawing a monthly payment, and reserving it for future use as a growing credit line? For those selecting an adjustable rate mortgage at Step 2.
Step 3:
  • Should I select a low-rate/high origination fee combination, or a low-fee/high interest rate combination?
  • What loan provider offers the best deal on my preferred HECM?
Step 4:
  • Should I use the personalized transaction information contained in the HECM Shopper’s Assistant, including the best price, to shop other sources?
Step 1: Enter Information About You and Your House
Borrow Against My Current House or Purchase a House:
Your Birthdate:    (ex: 3/15/1940) Help
Your Spouse's Birthdate:    (ex: 3/15/1940) Help
Property Value:    (ex: 300000) Help
Property Zip Code:    (ex: 90210) Help
Existing Mortgage Balance and Liens:     (ex: 120000) Help
Rate of Interest on Savings:     (ex: 1) Help
Expected Years in House: Help
Do you want to compare prices on this site with another quote?    
Type of Quote
Interest Rate:
Maximum Interest Rate:
Origination Fee:
Name of Loan Provider:
Why are we asking for the name of the loan provider?
First Last
Phone Number
Email Address
Re-enter Your Email Address:

Why are we asking for contact information? Help

Your Borrowing Power: On a fixed-rate HECM, this is the cash you draw at closing, in addition to repayment of any existing mortgage debt. On an adjustable-rate HECM, it is the total credit line, also an addition to repayment of any existing mortgage debt, but some of the line may not be available until a year after closing.
Birthdates: If both spouses are 62 or older, both are covered by the HECM. If one spouse is less than 62, payments cease upon the death of the older spouse but (subject to conditions) the younger spouse can remain in the house.
Birthdates: If both spouses are 62 or older, both are covered by the HECM. If one spouse is less than 62, payments cease upon the death of the older spouse but (subject to conditions) the younger spouse can remain in the house.
Property Value: Be conservative in making your best guess. The value used in the HECM contract will be based on a professional appraisal.
Property Zip Code: This is used to find the set of HECM loan providers who can deal with you. Many of them operate in only one or a few states.
Existing Mortgage Balance and Liens: Report the balance from your most recent financial statement. A HECM requires that you accept a new first mortgage on your home, which means that any existing mortgage or mortgages must be paid off with proceeds from the HECM. This will use some, and in some cases it might even use all of your HECM borrowing power. However, unlike your existing mortgages, the HECM will have no required payment.
Savings Rate: This is the interest rate on the assets you liquate or on the loan you take out to purchase the house.
Years in House: This period is used to find the best combination of interest rate and settlement costs. The combination is selected that minimizes your HECM loan balance over this period.
Amount Available for House Purchase & Credit Line: Users can also opt for cash draws or monthly payments.
Mandatory Repayment of Existing Mortgage Balance: Any existing mortgage or mortgages must be paid off with proceeds from the HECM.
Regulatory Restrictions on Cash Draws: HUD limits the amount of cash that can be drawn within the first 12 months of a HECM closing. Since upfront cash draws are the only option on a fixed rate HECM, part of the borrowing power on fixed rate HECMs is unusable.
Available Borrowing Power: The available borrowing power is the credit line on an adjustable rate HECM that can be used to draw cash or purchase a monthly payment, but some of it may not be available for 12 months. On a fixed rate HECM, it is the amount of cash that can be withdrawn at closing.
TALC: This number is required by regulators. It is of no use to borrowers in making decisions about their HECM.
Ratio of Available Funds to Settlement Costs: Available Funds are the sum of initial credit line, mortgage balance repayment, other upfront cash draws, and the present value of the monthly payments.
Upfront Cash Desired: This is in addition to any cash required to repay an existing mortgage balance.
Monthly Payment: Monthly payments use borrowing power equal to the estimated present value of the monthly payments.
Credit Line: The amount you would like to reservce as a credit line for future use.
Credit Line Remaining: This is caculated as a residual given the desired cash withdrawal and monthly cash payment.
Credit Line: The amount available for future use. If untouched, the credit line grows with interest over time.
HECM Charges: Assumes maximum cash draw
Other settlement costs: These include title insurance, closing agent fees, and recording costs.
Future Projections: Future Projections: Year-by-Year projections of the borrower’s debt, remaining equity, unused credit line and conversion options.
Future Financial Status Based on Expected Interest Rates: Draw amounts on HECMs are calculated using an 'expected' interest rate rather than the actual HECM rate prevailing at that time
Financed Settlement Costs: These settlement costs do not include any mandatory expenditures on property improvement that FHA might require as a condition for insuring the HECM.
Monthly Income for Life: Monthly payments continue until borrower dies or moves out of the house permanently.

Why do we ask for your contact information and what do we do with it?

As an inducement to lenders to provide us with their pricing, AND to price competitively, we agreed to provide the contact information of anyone who uses our calculator and selects a lender at the end of the process. The information goes only to the one lender selected, and to the professor, who will use it only in connection with his ombudsman responsibility in the unlikely event that any issues arise between the potential borrower and the lender. If after going through the process you are uncertain what you want to do and decide to seek counselling help, no lender will receive your contact information.

Why are we asking for the name of the loan provider?

We want to develop a data base showing how different loan providers price their reverse mortgages. Such data could be enormously useful to consumers shopping for a reverse mortgage. But if you prefer not to disclose for any reason, you can leave the question blank.
Privacy Policy: Your phone number and email address will only be used to answer your question(s). You will not receive calls or emails from other parties and your personal information will not be sold or given to any other parties.