Reverse Mortgage Calculator - Estimate Your Payout Reverse Mortgage Calculator

What is a Reverse Mortgage?

A reverse mortgage allows homeowners aged 62 or older to borrow against their home's equity. Instead of making monthly payments to a lender, the lender makes payments to you. The loan is repaid when you sell the home, move out, or pass away.

How It Works

• Home Equity: You must have significant equity in your home (typically no existing mortgage or a small balance).
• Age Requirement: Borrowers must be at least 62 years old. Older borrowers qualify for a higher percentage of equity.
• Principal Limit: The maximum you can borrow is based on age, interest rate, and home value using a Principal Limit Factor (PLF).
• Monthly Payments: You can receive funds as a lump sum, monthly payments, or line of credit.
• Loan Repayment: The loan balance grows over time as interest accrues; repayment occurs when the borrower leaves the home.

Principal Limit Factor (PLF)

How to Use This Calculator

1. Home Value: Enter the current market value of your home.
2. Existing Mortgage: Enter any remaining mortgage balance (set to 0 if fully paid off).
3. Borrower Age: Must be 62 or older. Higher age qualifies for more equity.
4. Interest Rate: The expected interest rate on the reverse mortgage.
5. Loan Term: How many years you plan to receive payments.

Important Considerations

• You remain responsible for property taxes, insurance, and home maintenance.
• The loan balance grows over time as interest compounds on the amount received.
• Most reverse mortgages are "non-recourse" — you or your heirs never owe more than the home's value.
• This calculator provides estimates; actual amounts depend on lender terms and current HECM limits.