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Reverse Mortgage Calculator

Reverse Mortgage (HECM) Definition
Have you ever wondered if you qualify for a reverse mortgage? Use our free online reverse mortgage calculator to see how much you may qualify for!

What is a Home Equity Conversion Mortgage (HECM)?
A home equity conversion mortgage (HECM), or reverse mortgage, is a program which allows Americans 62 years or older to withdraw a certain percent of the equity in their home. A lender essentially loans a senior part of the equity they have built up on their home. However, unlike traditional home equity loans, HECM loans do not need to be repaid immediately. They will be repaid upon the borrower’s death, when they no longer live in the home, or when they sell the home.
This makes HECM loans a financially stable plan for senior citizens’ unexpected expenses. Generally, older seniors who have more equity on their homes receive the most money from reverse mortgages.
Many seniors use HECM loans to:
  • Finance home improvements
  • Supplement Social Security
  • Pay for medical expenses
  • Pay off a current mortgage
What Does This Calculator Do?
This calculator will tell you whether or not you qualify for a reverse mortgage, and if so, how much money you may be eligible to receive. In order to use this calculator, you must input the following values:
  • The total value of your home – This will let the calculator find the amount of equity on your home
  • The total amount of debt on your mortgage
  • Your age – This is to see if you qualify for a reverse mortgage
  • Your zip code – The amount of money you qualify for may depend on your location

Then, the calculator will tell you if you are eligible for a reverse mortgage and approximately how much money you may be eligible to receive.

Applying for a Reverse Mortgage
Remember, you must meet with an independent counselor before applying for a HECM. This counselor will explain the loan’s costs and possible alternatives. The counselor will also help you compare the costs of the different types of reverse mortgages. Other responsibilities of the counselor include:
  • Explaining the loan’s financial implications
  • Explaining different payment options for the HECM
  • Explaining how fees and other costs affect the cost of the loan over time

Don’t hesitate to contact a counselor in your area. Although they charge about $125 for the consultation, this fee can be paid from the loan proceeds and you cannot be turned away because you can’t afford the fee.

How to Calculate Reverse Mortgage (HECM)
Let's be honest - sometimes the best reverse mortgage (hecm) calculator is the one that is easy to use and doesn't require us to even know what the reverse mortgage (hecm) formula is in the first place! But if you want to know the exact formula for calculating reverse mortgage (hecm) then please check out the "Formula" box above.