Reverse Mortgage Calculator
Estimate your potential reverse mortgage payments and analyze home equity changes over time
Understanding Reverse Mortgages
What is a Reverse Mortgage?
A reverse mortgage is a loan available to homeowners aged 62 or older that allows them to convert part of their home equity into cash. Unlike a traditional mortgage, no monthly payments are required.
The loan is repaid when the borrower moves out, sells the home, or passes away. The borrower remains responsible for property taxes, insurance, and maintenance.
Payment Options
- Lump Sum: Receive all funds at once. Best for immediate large expenses or debt consolidation.
- Term: Fixed monthly payments for a set period. Good for supplementing income for a specific timeframe.
- Tenure: Fixed monthly payments for life. Ideal for steady retirement income supplementation.
- Line of Credit: Flexible withdrawals as needed. Grows over time if unused. Best for emergency funds.
Key Considerations
- Must be 62 years or older
- Home must be your primary residence
- Required to maintain the home
- Must pay property taxes and insurance
- Loan balance grows over time
Benefits
- No monthly mortgage payments required
- Retain home ownership
- Non-recourse loan (cannot owe more than home value)
- Multiple payment options
- FHA insurance protection