Our reverse mortgage calculator can help you estimate how much of a lump sum you’ll receive if you decide to borrow a reverse mortgage.
Start by inputting the youngest co-borrower’s age, your estimated home value, outstanding mortgage balance (if applicable) and your ZIP code. You’ll also need to select the property type and how the property is used. Please note that any property use other than “primary residence” will disqualify you from taking out a reverse mortgage.
Once you’ve added all your loan details, our reverse mortgage calculator will display your estimated lump-sum amount. Now you can gather reverse mortgage offers from multiple lenders.
A reverse mortgage is a type of home loan that lets borrowers access the equity they’ve built over the years. Rather than making a mortgage payment each month, borrowers receive income from their lender in the form of a lump sum, monthly payout or line of credit.
You must meet the following general requirements to qualify for a reverse mortgage:
A reverse mortgage makes sense if you need to supplement your income and plan to age in place. It also works if you can comfortably keep up with your homeowners insurance, property taxes and routine maintenance.
There are three main types of reverse mortgages:
Equity requirements for a reverse mortgage vary by lender, but a good rule of thumb is to have at least 50% equity in your home.
If you don’t own your home outright, you’ll need to use some of your available equity to pay off your outstanding forward mortgage balance before you can receive any income from a reverse mortgage.
There are several reverse mortgage fees, including:
A reverse mortgage is typically paid back when you move out of the home or pass away. In many cases, the loan is repaid through a home sale.
When you borrow a reverse mortgage, you’re no longer making monthly mortgage payments. However, you’ll still be responsible for paying your homeowners insurance premiums and property taxes. Failure to keep up with these ongoing costs can lead to reverse mortgage foreclosure.
Follow these tips to avoid falling victim to a reverse mortgage scam: