Reverse Mortgage Calculator

Thinking about borrowing a reverse mortgage? Use our free reverse mortgage calculator to determine the lump-sum payment you might qualify for. 

Senior homeowners can use a reverse mortgage for income to maintain their lifestyle, pay off debt, cover home improvement expenses or meet other financial goals.

Terms & Conditions Apply, NMLS#1136

How does a reverse mortgage loan work?

A reverse mortgage is a home loan that provides income to senior homeowners by drawing from their available home equity. Rather than making a payment each month as you would on a “forward” mortgage, you’d receive funds from your lender in the form of a lump sum, monthly payout or line of credit. 

General reverse mortgage requirements include the following: 

    • Be at least 62 years old 
    • Have zero delinquencies on any federal debt 
    • Own your home free and clear or have 50% equity or more 
    • Participate in reverse mortgage counseling 
    • Use the home securing the loan is your primary residence

Using our reverse mortgage calculator

Our reverse mortgage calculator can help you determine how much money you might qualify to receive in a lump-sum payment. No personal information is required to calculate your estimate. 

Start by inputting your property type, estimated home value, ZIP code, outstanding mortgage balance (if applicable) and the youngest co-borrower’s age (if applicable). You’ll also need to select the property use — this should be “primary residence” in order to meet reverse mortgage requirements. 

Once you’ve added all your loan details, the calculator provides your estimated lump-sum amount. Now you’re ready to gather multiple reverse mortgage offers.

Reverse mortgage FAQs

There are three main types of reverse mortgages: 

      • Home equity conversion mortgage (HECM): The only reverse mortgage backed by the Federal Housing Administration (FHA). 
      • Proprietary reverse mortgage: Often caters to homeowners with high-priced homes and is offered by a private company.
      • Single-purpose reverse mortgage: Typically has income limitations and is usually provided by local or state governments and nonprofit organizations.

A reverse mortgage might make 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.

Requirements for a reverse mortgage vary by lender, but a good rule of thumb is to have at least 50% home equity. 

If you don’t own your home outright, some of your available equity may go toward paying off your outstanding forward mortgage balance before you receive any reverse mortgage income.

There are several reverse mortgage costs, that could include, but are not limited to: 

      • Loan origination fee up to $6,000
      • An upfront mortgage insurance premium, which costs 2% of your home’s value
      • An annual mortgage insurance premium, which costs 0.5% of your home’s value 
      • A reverse mortgage counseling fee, which could cost $125 or more
      • A home appraisal and title search fee, among other closing costs

A reverse mortgage is typically paid back when you move out of the home or die. In many cases, selling the home repays the loan.

When you borrow a reverse mortgage, you’re no longer making monthly mortgage payments. However, you’ll still have to pay your homeowners insurance premiums, property taxes and any recurring maintenance costs. Failure to keep up with these ongoing costs can lead to foreclosure.

Follow these tips to avoid falling victim to a reverse mortgage scam: 

    • Ignore unsolicited reverse mortgage advertisements and offers. 
    • Cease communication with any salesperson trying to pressure you into a decision. 
    • Watch out for contractors encouraging you to take out a reverse mortgage to cover home improvements. 
    • Don’t sign any documents that aren’t clear. 
    • Work with an FHA-approved lender (if you’re interested in a HECM loan).