Using a Reverse Mortgage Calculator

reverse mortgage calculator

Reverse mortgage calculators are quickly becoming a potential borrower's favorite tool in helping decide if a reverse mortgage can benefit them.  With reverse mortgage loans, especially the government-insured version HECM (Home Equity Conversion Mortgage), senior homeowners are able to access the equity available from their homes without having to sell their home and leave it, as long as all loan terms are met.  This is a great advantage, as senior homeowners before the last half century have had to choose between either accessing home equity or aging in their home, and not enjoying both simultaneously.  And now, with HECM calculators, potential borrowers can get a convenient estimate for how much money they may qualify for from their home's equity.

A Starting Point

HECM calculators, offered online by reputable reverse mortgage lenders, can serve as the starting point on the road to determining if a reverse mortgage may be right for you as a senior homeowner.  These calculators will conveniently compute an estimate of your loan amount, after you input a few important pieces of information:

  • Your estimated home value
  • Your existing mortgage amount or liens, if any
  • Your age
  • Your zip code

With the estimated loan amount that you may qualify for, you can get an idea if a HECM can provide you with enough money to accomplish what you want from this loan.  Although these calculators cannot give you the exact loan amount, and oftentimes do not include fees and loan costs, it does fulfill the purpose of giving you a starting estimate.  To get your accurate and personalized loan amount, all you have to do is move on to the next step of consulting with a reputable HECM lender to confirm your estimate.

Free Consultations

Once the calculator presents an estimate, you might realize that the loan amount you may qualify for can really benefit you.  Therefore, the next step is to contact a reverse mortgage professional from a reputable lender.  Factoring in the details of your unique situation, your HECM professional can figure out a much more accurate loan amount that you can qualify for.  This quote will depend upon the same information originally asked from you by the calculator, except all information will be verified to thus produce the accurate loan amount.  

The information needed will include the ages of all borrowers, the appraised value of your home, and the exact amount of any liens.  If you choose a reputable HECM lender, you can always expect your reverse mortgage consultations to be offered free with no pressure or obligation, and you can expect your licensed HECM professional to be your main resource for information throughout the entire reverse mortgage process.

Is it Right For You?

The HECM reverse mortgage is of course a big decision.  Whether or not it is right for you will take a bit of research about the loan product as well as some questions you will want to ask yourself:  

  • Do you prefer to age in your home?  
  • Would you like to eradicate a monthly mortgage payment?  
  • Would you like access to your home's equity?  
  • Has the calculator shown you a loan amount that could help you accomplish what you want financially?  

The result from a reverse mortgage calculator will be your first step in determining for yourself whether or not this loan product is right for you to build a more financially comfortable retirement.


About American Advisors Group

American Advisors Group, the nation’s leader in reverse mortgage lending, is dedicated to helping American seniors convert a portion of their home equity, a largely untapped asset, to help fund their retirement needs. To learn if a reverse mortgage can work for you, visit to use the  AAG reverse mortgage calculator.

American Advisors Group is proud of its  A+ rating by the Better Business Bureau, and 97% customer satisfaction rating, and is a proud member of the National Reverse Mortgage Lenders Association (NRMLA). To learn more about reverse mortgages and American Advisors Group, please visit


About The Author

As a writer for American Advisors Group, the leading U.S. reverse mortgage lender, Alberta Lim is committed to sharing news and information seniors can use to improve their quality of life.