Reverse Mortgage Calculator - What To Look For

Reverse mortgage calculators are an excellent tool in determining the amount of money you can obtain from a reverse mortgage as well as how much a payment amount may be. Here's a look at how these calculators can be of a great benefit to you.

While you may discover that you may be able to get a significant amount based on a reverse mortgage calculator, keep in mind that you still must go through the application process and credit counseling before you will be able to obtain a reverse mortgage. Also, you will want to keep in mind that interest rates change, and the reverse mortgage calculator is just an estimate.

The type of calculator that seems to work best is one that will give you estimated loan amounts for all three major types of reverse mortgage programs. The three types of reverse mortgage programs are FHA loans, HECM (Home Equity Conversion Mortgage), and the Home Keeper Mortgage from the Fannie Mae Foundation.

Where can you find a reverse mortgage calculator? The best way is to go online to the three non profit websites that are not affiliated with any type of reverse mortgage in particular and look at what they have to offer.

When beginning to use any mortgage calculator you might want to get some basic information together first. While entering exact information is not necessary for this early evaluation step, you will find that the more accurate the information that you input into the reverse mortgage calculator the more accurate your estimated loan amount will be.

Of course, you have your basics such as birth date, the birth date of your spouse, your estimated home value, and your zip code. But, other optional fields that can give you an even more accurate estimate include mortgages and liens on the home, monthly mortgage payments, any upfront cash amount that you want or need, the estimated cost of repairs that you want to fund with the loan, and your desired credit line amount.

When you have entered all of this information and submit it to the reverse mortgage calculator you will receive easy to read information about the loan types and amounts that you may qualify for. This will give you a starting point for discussion with a credit counselor.

Again, this type of calculator is a great way to get an estimate on loan amounts and payments, but still keep in mind that it is only good for getting a ball park idea and shouldn't be relied on to be a final figure.