Reverse Mortgage Basics
A reverse mortgage is a product that allows homeowners who are at least 62 years of age to convert a portion of your home’s equity into usable cash. The most popular reverse mortgages is called a HECM or Home Equity Conversion Mortgage. One of the benefits of the HECM reverse mortgage is that it is federally-insured. The reverse mortgage calculator is assuming that you are taking advantage of the standard HECM loan and is calculating in the mortgage insurance.
Reverse Mortgage Benefits
One of the most important benefits of a reverse mortgage is that it is non recourse. What this means is that you cannot owe more than your home is worth. This protects you in the event that when the reverse mortgage becomes due and payable, the balance of the reverse mortgage exceeds the value of the home. It is important to know that the funds from a reverse mortgage can be used however you want. There are absolutely no restrictions. A reverse mortgage will never affect entitlement benefits like Social Security and Medicare. If you receive need-based benefits like Supplemental Security Income or Medicaid, the proceeds from a reverse mortgage could affect these benefits.
Reverse Mortgage Calculator
In order to find out how much you might be able to receive, please use our reverse mortgage calculator. The calculator automatically factors in the cost of mortgage insurance based upon your selected estimated home value as well as estimated title fees based upon your state and home’s value. The interest rate and origination fee can be adjusted in order to explore different scenarios.