Home / Reverse Mortgage Purchase Down Payment Calculator

Purchase Your Next Home and Make $0 Mortgage Payments For Life

Instantly calculate how much you may qualify for. Fast - Secure - No SSN required

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Please tell me the estimated purchase price and state of the home you will be purchasing.

Purchase Price

State

Reverse mortgage proceeds are based in part on your age. If you have a spouse their age will be needed as well in order to give you the most precise calculation.

Your DOB

Spouse DOB (If you have a spouse)

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It looks like your home value is around $~hvalue~. If you feel that the estimate is not correct you can manually change it below. If you presently have an existing mortgage on your home this info will be needed as well.

I was unable to fetch a home value for the property details given. Please input the value manually below. If you presently have an existing mortgage on your home this info will be needed as well.

About Line of Credit

Your Reverse Mortgage Line of Credit is subject to the Line of Credit Growth calculation. The Line of Credit Growth Rate is the combination of your Initial Loan Rate and the Mortgage Insurance Renewal Rate. The Line of Credit Growth Calculation is based on how much money is available in your Line of Credit that has not yet been advanced. If you advance 100% of the funds in your Line of Credit, there would be no further growth as there would be no remaining funds available in your Line of Credit. Your Line of Credit Growth Rate is variable because the Initial Loan Rate is a variable that is subject to change once per year on an Annual Adjustable Loan.

About Cash at Closing

HUD guidelines limit the amount of money that you are allowed to receive at time of closing and during the first 12 months after the loan has been closed. This dollar amount is how much money would become available to you from the Line of Credit once you reach 12 months from the day your loan closes based on the estimated figures you have provided for this calculator.

About Loan Balance

Your Reverse Mortgage Loan Balance will increase over time as you are not required to make any monthly mortgage payments with a Reverse Mortgage loan. The Interest and Mortgage Insurance Renewal will accumulate based on the outstanding Loan Balance. You can make payments on the Reverse Mortgage to prevent this balance from increasing if you want to, but it is not required. The Reverse Mortgage loan is a Non-Recourse loan which means you cannot owe more than the value of your home.

About Property Value

This calculation is based on the standard HUD disclosure of 4% per year expected property value appreciation. This is not a guarantee of what your home value will be in the future and is just for illustration purposes only. Your Property Value will adjust up or down as the local real estate market conditions dictate.

About Home Equity

Home Equity is the difference of your Property Value minus your Loan Balance. This is also a calculation for illustration purposes only and not a guarantee of what your home equity will be in the future. Your Home Equity will vary depending on how much your Loan Balance becomes compared to what your Property Value is at any given time in the future.

About Existing Mortgage

If your home currently has a mortgage, please specify the full amount balance in the existing mortgage field.

Doc Preparation

This is a 3rd party service selected by the Lender that is responsible for preparing the final closing documents which include the note, deed of trust, agreement, etc. They are responsible for making sure that the documents are in compliance with local and federal guidelines.

Flood Certification

This is a 3rd party service that is responsible for ascertaining whether or not a property is located in a Flood Zone as determined by FEMA and provides a Life of Loan determination/guarantee

Mortgage Insurance Premium or MIP

This is the fee that is paid directly to HUD at closing of the loan to insure the individual loan under the HECM program.

Settlement or Closing Fee

This is a 3rd party service that is responsible for handling the settlement or closing of the loan. They work with the title company to get the public records information, they work with existing lenders to obtain payoffs, coordinate with the lenders for funding and the counties for recording of the loan.

Counseling Fee

This is a 3rd party service that is providing the counseling session to each Reverse Mortgage applicant in the beginning stage of the process. This is a HUD requirement in order to start the Reverse Mortgage process. The counselors are tasked with educating the borrowers about Reverse Mortgages as well as determining if there are any other types of financing they may qualify for.

Appraisal Fee

This is a 3rd party service again as well. The appraisal fee goes to an Appraisal Management Company or AMC. Their responsibility is to assign the appraisal order to a local FHA approved appraiser in the same market area as the property of the Reverse Mortgage borrower and to be the go-between for the Lender and the appraiser to maintain appraiser independence. They also are required to review all appraisals for errors or omissions prior to delivering the report to the Lender.

Credit Report

This is another 3rd party service. The credit company is required to provide a full credit report from all 3 bureaus (Experian, Transunion & Equifax) for each Reverse Mortgage applicant to determine the borrower’s credit scores, credit history and any delinquencies or public record items. This is a necessary step in the process as a Lender must review a borrower’s credit history for specific items to determine eligibility into the program.

Lender’s Title Insurance

This is a 3rd party service that is required for any type of loan that is done and is not specific to Reverse Mortgages. For every loan done, a title report must be obtained from a Title Company and the company has to insure the Lender in the transaction for the required dollar amount based on appraised value, etc. The fee for title insurance usually varies by loan type and from state to state.

Endorsements

Lenders require various different types of endorsements to the title policy based on the type of loan being given. For a Reverse Mortgage, some endorsements that are required are the Neg-Am and Environmental and in order to provide these endorsements to the policy, there are usually additional charges. Other such endorsements that are required can vary based on property type (ex. Condo, PUD, Manufactured Home). The charges for these endorsements will vary from state to state.

Recording Charges Mortgage

Whenever a new loan is completed, the Security Instruments (Deeds of Trust or Mortgage – verbiage varies from state to state) must be recorded with the county recorder’s office to finalize the transaction. There is always a charge to record documents and that is why there is a Recording fee for all loans. Recording charges can vary from County to County and State to State as well.

Notary

All final loan documents must be executed in front of a notary as there are documents that require notarization such as the deed of trust. This is a 3rd party service and is based on the amount that the signing service will charge to handle the signing and notarization of all necessary documents.

Initial Draw From You Credit Line

The quote and pricing terms on this page are based on a max initial lump sum. If you would like to receive a lesser amount at closing than is shown, please enter that amount in the box below and click on calculate

Using our Purchase Down Payment Calculator

Each week we update our purchase calculator to reflect current interest rates and programs offered at All Reverse Mortgage®. Request a formal analysis including written loan comparisons, down paymment options and amortization schedules by completing step 3 or call us Toll Free (800) 565-1722

Step 1. Input your date of birth, property zip code, estimated purchase price.

Step 2. Compare and select the program that best suits your needs.

Step 3. Print summary or request formal analysis by email.

Legal stuff: Reverse mortgage calculations and down payment options are for illustration purposes only and not an offer to lend. Rates and programs are subject to change without notice.