Our Reverse Mortgage Calculator displays real time results. A full comparison table will populate showing the most recent reverse mortgage programs. Your calculation will be based on the age of the youngest borrower, your home value, and your existing mortgage amount.
Rates updated: 2016-05-10.
Monthly Libor Index: 0.43730
Annual Libor Index: 1.22440
- Margin – The base rate provided by your lender. The margin will not change for the duration of the reverse mortgage.
- Initial Rate – Rate the reverse mortgage starts at. For the LIBOR, or adjustable, mortgages the intial rate is your margin plus your index. Initial Rate = Margin + Index
- MIP – A rate added to your Initial Rate. The MIP is a government insurance rate. The mortgage insurance guarantees that you will receive expected loan advances.
- Cap on Interest Rate – The maximum the Initial rate can reach. The Monthly LIBOR has a cap of 10% and the Annual LIBOR has a cap of 5%.
- Property Value – Your property value. This can be estimated since the property value will ultimately be determined by the appraisal amount.
- Maximum Claim Amount – The amount your reverse mortgage is eligible to be calculated. The maximum claim amount is your property value. However, the limit is $625,500. If your home value exceeds the limit then your maximum claim will be equal to $625,500.
- Remaining Principal Limit – The remainder of your Principal Limit after the fee’s are deducted.
- Liens and Mortgages – Any existing liens or mortgages on your home. This amount is a mandatory deduction from your Remaining Principal Limit. Thereby eliminating your current mortgage.
- Total Mandatory Obligations – The sum of all your fee’s and existing mortgages.
- Initial Disbursement Limit – The maximum you can receive from your reverse mortgage during the first year. This limit includes fee’s, mortgages, and the amount of cash you are eligible to receive at closing.
- Max Available Cash at Closing – The amount of cash you are able to receive at closing. If you don’t take the cash, then the amount is added to your line of credit. Fixed rate loans require the money to be withdrawn at closing and do not provide a line of credit.
- Total Line of Credit – A line of credit you are able to use after one year of the reverse mortgage closing. Fixed rate reverse mortgages do not have a line of credit. The money stays in your principal.
- Principal Limit – An age based percentage of what you are eligible to receive. Our reverse mortgage calculator uses the most up to date factors provided by HUD.
- IMIP – An upfront mortgage insurance premium rate which guarantees that you will receive expected loan advances.
- Origination – The fee your lender chooses. This is based upon a calculation derived by your home value. The maximum any origination fee can be is $6000.
- Other Costs – Estimated closing costs such as Title, Escrow, Credit Reports, Flood Certs, etc.