Reverse Mortgage Calculator
Reverse Mortgage Estimate
Estimate available reverse mortgage proceeds
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Loan Balance Over Time
See how a reverse mortgage balance grows over time
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Formula
Net Proceeds = (Home Value × PLF) − Closing Costs − MIP − Existing Mortgage | Balance Growth: B(t) = B(t-1) × (1 + r/12 + MIP/12) + Monthly Draw
Frequently Asked Questions
What is a reverse mortgage?
A reverse mortgage (HECM - Home Equity Conversion Mortgage) allows homeowners 62+ to convert home equity into cash without monthly payments. You can receive a lump sum, monthly payments, or a line of credit. The loan is repaid when you sell, permanently move out, or pass away.
How much can I get from a reverse mortgage?
The amount depends on your age, home value, interest rates, and current mortgage balance. Generally, you can access 40-75% of your home's value. Older borrowers and those with lower interest rates receive more. The FHA lending limit caps the home value used in calculations.
Do I still own my home with a reverse mortgage?
Yes, you retain ownership and title. You must continue to pay property taxes, homeowner's insurance, and maintain the home. You can never owe more than the home is worth (non-recourse). Your heirs can keep the home by paying off the loan balance or 95% of the appraised value.
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