HECM Calculator: Net Available Line of Credit or Tenure Payment for a Variable Rate Loan (updated for October 2017 rules)

Home's Appraised Value
HECM Eligible Amount
10-Year LIBOR Swap Rate
Lender's Margin
Monthly Insurance Premium
Age of Youngest Eligible (Borrower or Non-Borrower) Spouse Note: Round age up if birthday falls within six months of the first day of the month that the loan will close
Age Modified Expected Rate
Principal Limit Factor
Maximum Possible Amount
Loan origination fee
Initial mortgage insurance
Other closing costs (appraisal, titling, etc.)
Total Upfront Costs
Percentage of Upfront Costs to be Financed
Debt Repayment, Repairs, or Other Life-Expectancy Set-Aside (LESA) Requirements
Net Available HECM Credit
Monthly Annual Payout Rate
Net Available as a Tenure Payment
Term Payment Calculator
Desired Term Horizon (Years)
Monthly Annual
Net Available as a Term Payment

Note: Modified Expected Rate is rounded down to nearest 0.125% multiple. Also, this rate cannot be less than 3% or greater than 18%.

5 Comments

  1. Calculating Reverse Mortgages | Retirement Researcher on March 24, 2016 at 10:50 am

    […] I have created a calculator that allows users to get a sense of the principal limit available with an HECM reverse mortgage on their home using the most popular one-month variable rate option. The calculator asks for eight boxed inputs, and uses these inputs to calculate the net principal limit. It also provides the amount of income that could be received as a tenure payment for those seeking this option. An optional ninth input also allows for a term payment amount to be calculated. I will describe tenure and term payments in detail later, but the calculator provides sufficient definitions for now. […]



  2. Calculating Reverse Mortgages - McLean Asset Management on March 24, 2016 at 11:30 am

    […] I have created a calculator that allows users to get a sense of the principal limit available with an HECM reverse mortgage on their home using the most popular one-month variable rate option. The calculator asks for eight boxed inputs, and uses these inputs to calculate the net principal limit. It also provides the amount of income that could be received as a tenure payment for those seeking this option. An optional ninth input also allows for a term payment amount to be calculated. I will describe tenure and term payments in detail later, but the calculator provides sufficient definitions for now. […]



  3. Improving Retirement Income Efficiency Using Reverse Mortgages - Retirement Researcher on March 29, 2016 at 11:19 am

    […] By Wade Pfau, Ph.D., CFA March 29, 2016 Published Articles, Real Estate, Retirement Income Frameworks, Reverse Mortgages No Comments 0 Download Reverse Mortgage Fact Sheet Use Wade's Reverse Mortgage Calculator […]



  4. Academic Research and Other Uses for Reverse Mortgages - Retirement Researcher on March 31, 2016 at 11:33 am

    […] By Wade Pfau, Ph.D., CFA March 31, 2016 Published Articles, Real Estate, Retirement Income Frameworks, Reverse Mortgages No Comments 0 Download Reverse Mortgage Fact Sheet Use Wade's Reverse Mortgage Calculator […]



  5. How to Use Reverse Mortgages to Secure Your Retirement - Retirement InSight and Trends on April 21, 2017 at 1:33 pm

    […] On my website, I have a calculator that can be used to play around with different home values, interest rates, and so forth to get an idea of how much can be borrowed from a reverse mortgage, and also 10-year payments and term payments if that option is chosen. […]