An Online Reverse Mortgage Calculator
The usage of HECM calculators is just for illustrative reasons; they shouldn't be substituted for qualified financial advice. Customers of the FHA Home Equity Conversion Mortgage (HECM) program may use HECM calculators to gain a general idea of expenses, fees, and loan profits. For illustrative purposes only, the maximum origination fee permitted by HUD regulations is shown in this example along with an estimated FHA mortgage insurance premium for a loan based on the provided home value, an estimated recording fee and tax amount, and other types of closing costs typically related to a home purchase. Remember that these closing costs might and often do change depending on where you reside.
Lender to lender variations in interest rates and fees are also possible. The interest rate on a variable-rate HECM loan is determined by an index plus a margin. Using our calculator, you can see how the "index" (the Monthly Adjusted LIBOR, which we use) fluctuates when interest rates fluctuate in the market.
The true interest rate that will be charged will be determined by adding a "margin." We use a 175 basis point safety buffer in our computation (1.75 percent ). On lender fees and closing costs, reverse mortgage originators may give a broad range of margins and credits. The lender must provide the borrower further information about the costs and conditions of any reverse mortgages offered by the originator of their choice or the originator they have chosen after they have made their decision and submitted an application for one. The National Reverse Mortgage Lenders Association (NRMLA) cannot provide loans since it is not a licensed lender or broker.