Reverse Loan Calculator

Step-by-Step Guide to Using the Reverse Loan Calculator

Step 1: Accessing the Calculator

Open the Reverse Loan Calculator interface on your device. Ensure that you have a stable internet connection for the application to load efficiently.

Step 2: Entering Property Value

Locate the field labeled Property Value ($). Enter the value of your property in dollars by following these guidelines:

• Your property value must be at least $100,000 and no more than $10,000,000.
• Ensure this field is filled in since it is required.

Step 3: Inputting the Age of the Youngest Borrower

Find the field labeled Age of Youngest Borrower. Input the age of the youngest person applying for the reverse mortgage:

• The borrower must be at least 62 years old, with a maximum age of 120.
• This field is mandatory, so make sure it is completed accurately.

Step 4: Setting the Interest Rate

Identify the field Expected Interest Rate (%) where you should specify the anticipated interest rate in percentage:

• The interest rate should be between 0.01% and 15%.
• You can adjust this value in steps of 0.125% based on your requirements.
• This is another required field that should not be left blank.

Step 5: Selecting the Loan Type

Navigate to the Loan Type selection box. Choose an appropriate loan type from the options provided:

• HECM (Home Equity Conversion Mortgage)
• Proprietary Reverse Mortgage
• This selection is compulsory for the calculation.

Step 6: Calculating the Results

Once all the required fields have been filled out correctly, initiate the calculation to generate the results. The calculator will display the following:

• Principal Limit: This amount represents the maximum loan available, calculated using your property value and borrower age.
• Available Funds: The accessible amount of money based on your principal limit or up to 60% of your property value, whichever is lower.
• Estimated Monthly Payment: The likely monthly amount you can draw from the available funds.
• Estimated Annual Cost: This is the annual cost estimation based on the interest rate and available funds.
• Loan-to-Value Ratio: The percentage indicating the relationship between the loan amount and the property value.

Step 7: Review and Save the Results

Carefully review the calculated results. Ensure all information entered is correct. If everything is satisfactory, consider downloading or saving the results for future reference. Utilize them to make informed financial decisions regarding your reverse mortgage options.