The information which you calculate from the Quick Calculator and the WIZARD Calculator is intended for use by you as a guide only. It is not an offer and has no legal effect on any applications or contracts entered into by you. These simulations and the resulting calculations do not constitute a loan application or any loan offer. The figures and formulae used within this Calculator may change at any time without notice.
Interest rates on variable rate HECM loans are comprised of two elements, an index and a margin. The “index” (our calculator uses the Annual and Monthly Adjusted LIBOR, which is a common index used in the market) will adjust regularly, as market interest rates move up or down. The fixed rate loan carries a fixed rate of interest.
For the Quick and WIZARD Calculator we use default margins of 2.5% and 3% for the monthly and annual variable rate loans respectively. We use the current FHA expected interest rate of a minimum 5.06% to estimate the amounts a borrower could possibly obtain against their home value and considering their current age. We also use this same interest rate of 5.06% for the fixed rate loan example. The rates and fees shown are not the actual rates you might be offered by any particular lender, but generally represent rates that may be available in the market today, with the maximum origination fee allowable under HUD rules reflected for illustrative purposes only, along with an estimated FHA Upfront Mortgage Insurance Premium for a loan based upon the home value provided, and estimated recording fees and taxes, and other types of closing costs typically associated with a reverse mortgage loan. Note these closing costs can and do vary by geographic area or region.
The WIZARD Calculator permits a consumer to enter optional information on disbursements, interest rates, repayments, etc. The WIZARD Calculator can also provide an indication if the borrower(s) have sufficient income for HUD’s HECM Financial Assessment. This information is indicative. Only a delegated HUD underwriter may make the final decision of whether or not a borrower(s) is approved for a HECM.
Should you apply for a reverse mortgage loan, we and the lender will make our own calculations and related legal disclosures. All reverse mortgages are subject to federal and/or state regulation and legal compliance, with the consumer obtaining extensive information on many aspects of the product and its costs. Those legal disclosures are generally made on application and initial product selection, and again prior to loan closing. The information provided as a result of this simulation have no legal offering.
JM Capital LLC accepts no responsibility for any losses arising from any use of or reliance upon any calculations or conclusions reached using the Quick Calculator or WIZARD Calculator.
Information provided on any of the Calculators does not constitute an offer of finance. Any loan request is subject to assessment against required lending criteria and current loan pricing.
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