The most popular reverse mortgage loan rate calculators on the internet are those developed and licensed by Netirement.com, Inc. According to their website, “over 80% of web surfers use a NETirement RM calculator” (i.e. reverse mortgage loan rate calculator). Licensees include the following major providers of reverse mortgages and reverse mortgage information.

* AARP
* NRMLA (the Reverse Mortgage industry association)
* Wells Fargo (the #1 Reverse Mortgage loan originator)
* Bank of New York (the #4 Reverse Mortgage loan originator)
* Circle Mortgage (Florida’s largest independent RM originator)
* EverBank (NC, SC, GA, FL, VA)
* Progressive Lending (AZ, CA, NV, WA)
* Jefferson Mortgage Services (Texas)

These calculators are all more or less identical. If you enter the same data into them (and we did), you will get identical results. One exception: the AARP website calculator output provides just two head-to-head loan comparisons - Monthy Adjusting HECM vs Fannie Mae HomeKeeper. The version of the Netirement.com calculator used on the other sites listed above provides a third loan comparison Annual Adjusting HECM.

Presumably, AARP is trying to keep things simple for users by excluding this less popular HECM option.

If you take the “vote of confidence” approach (like Google does) and assume that the calculator selected by the most authoritative and respected reverse mortgage sites must be the best reverse mortgage calculator, then the Netirement.com product clearly wins.

The Department of Housing and Urban Development (HUD), the creator and primary moving force behind reverse mortgages, does not provide a reverse mortgage calculator at its reverse mortgage website. Rather, it provides a link to the Netirement.com calculator at the AARP site.

Strengths

1. Easy to use - four pieces of readily available information are needed for the basic analysis: birthdates for homeowner and spouse (or co-owner); estimated market value of the home and, zip code where home is located. Other information (such as existing mortgage balance) can be added to refine the analysis to your specific situation.

2. Detailed output report itemizes specific estimated fees, mortgage insurance premiums, and loan rates. This calculator provides a very complete finacial picture.

3. With AARP, NRMLA, and several major reverse mortgage providers selecting this product (and being involved in its development), it’s likely that it is the most accurate and comprehensive reverse mortgage calculator available to the general public.

Weaknesses

1. Does not include the Financial Freedom Cash Account reverse mortgage - this program is geared toward homeowners with high-value homes (e.g. over $500,000) and is not nearly as heavily utilized as the HECM or Home Keeper programs. Still, including this program in the calculator results would be helpful if for no other reason than to save seniors from researching a program that does not meet their needs.

2. The thoroughness of the output report (a strength) could overwhelm and confuse some seniors.

Nonetheless, reverse mortgages are complex finacial products that work counter to most people’s way of thinking. Making application for a reverse mortgage is a major life-decision and requires borrowers to diligently do their homework. For this, the detailed analysis generated by the Netirement.com calculator is indispensable information.

If, however, you are at the initial stages of exploring reverse mortgages and simply want a quick overview of the loan amount you might be able to get, there are some other reverse mortgage loan calculators that might better suit your needs without overwhelming you. These will be reviewed in a future post.

A Few More Related Articles of Interest:

Compare Reverse Mortgage Lenders - A New Tool Can Help

Other Reverse Mortgage Calculators

ReverseVision Reverse Mortgage Calculator

The Reality Retirement Calculator - assessing needed income for retirement

Free Downloadable Reverse Mortgage Calculator Doesn’t Deliver