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Thinking about borrowing a reverse mortgage? 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.
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.
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:
There are three main types of reverse mortgages:
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:
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: