Reverse Mortgage Calculator
Estimate your potential borrowing amount, future loan balance, and remaining home equity with this reverse mortgage calculator. Enter your details to explore different scenarios and understand how your home equity changes over time.
What Is a Reverse Mortgage?
A reverse mortgage allows homeowners, typically aged 55 or older, to borrow against their home equity without making monthly repayments. Instead, the loan balance grows over time, and is usually repaid when the home is sold or the borrower moves out or passes away. The amount you can borrow depends on your age, home value, lender policies, and the amount of equity you wish to protect. Interest and fees are added to the loan balance, and your remaining home equity may decrease over time depending on property value growth and the loan’s compounding interest.
A reverse mortgage allows homeowners, typically aged 55 or older, to borrow against their home equity without making monthly repayments. Instead, the loan balance grows over time, and is usually repaid when the home is sold or the borrower moves out or passes away. The amount you can borrow depends on your age, home value, lender policies, and the amount of equity you wish to protect. Interest and fees are added to the loan balance, and your remaining home equity may decrease over time depending on property value growth and the loan’s compounding interest.
How to Use the Reverse Mortgage Calculator
Step One: Enter the youngest borrower’s age, your property’s estimated value, and the percentage of your home equity you wish to protect. These factors help determine your maximum borrowing amount.
Step Two: Input the annual interest rate offered by your lender, the number of years you expect to keep the reverse mortgage, and your estimated property growth rate. This information projects how your loan and home value may change over time.
Step Three: Add any upfront costs and recurring monthly fees associated with the reverse mortgage. These costs will be included in the calculations for your future loan balance and equity.
Step Four: Click the Calculate button to view your personalized results. The calculator will display your estimated maximum borrow amount, future loan balance, projected home value, and your remaining equity after the selected term.
Step Five: Review the explanation provided to understand how the results were calculated. Use these insights to compare scenarios and make informed decisions about your reverse mortgage options.