Understand Your Home Equity Potential

Explore your reverse mortgage options instantly with our easy-to-use calculator—personalized insights, transparency, and financial clarity at your fingertips.

Reverse Mortgage Calculator – Frequently Asked Questions

What Is a Reverse Mortgage and How Does It Work?

A reverse mortgage is a home loan available to homeowners aged 62 and older. It allows you to convert a portion of your home equity into cash without making monthly mortgage payments. The loan is repaid when the last borrower sells the home, moves out permanently, or passes away.

What Are the Basic Requirements to Qualify?

  • Be at least 62 years old
  • Live in the home as your primary residence
  • Have substantial equity (typically 50% or more)
  • Complete a counseling session with a HUD-approved advisor
  • Stay current on property taxes, homeowners insurance, and home maintenance
  • Meet FHA property and flood zone standards (for HECM loans)
  • Have no outstanding federal debt in delinquency

What Types of Reverse Mortgages Are Available?

Home Equity Conversion Mortgage (HECM)

HECMs are the most common type of reverse mortgage and are insured by the FHA. They allow qualified homeowners to access home equity through a lump sum, monthly payments, or a line of credit. Repayment is deferred as long as the borrower lives in the home and meets the loan obligations.

HECM loans are non-recourse: neither you nor your heirs will owe more than the home’s value when it’s sold.

Use the calculator above to see what you may qualify for — no personal info required.

Proprietary (Jumbo) Reverse Mortgages

Private reverse mortgage products are designed for homeowners who:

  • Are under age 62
  • Own high-value homes (typically $1M+)
  • Live in non-FHA-approved condos

These options may allow for higher loan amounts and more flexible underwriting than traditional HECMs.

How Much Equity Do I Need?

You typically need to own your home outright or have at least 50% equity to qualify for a reverse mortgage.

How Can I Receive the Money?

  • Lump Sum: One-time payout at closing
  • Line of Credit: Draw funds as needed; unused funds grow over time and don’t accrue interest
  • Monthly Payments:
    • Tenure: Monthly payments for life as long as you live in the home
    • Term: Monthly payments for a fixed period
  • Combination: Blend of credit line and monthly advances

How Much Can I Borrow?

Your loan amount depends on your age, current interest rates, and your home’s value (up to $1,209,750 for FHA limits).

If you choose a lump sum disbursement, you may receive:

  • Up to 60% of your principal limit, OR
  • Enough to cover mandatory obligations plus 10% — whichever is greater

The remainder may be available after 12 months, depending on your plan.

When Does a Reverse Mortgage Make Sense?

  • Retirement Planning Strategy: Use home equity early to increase financial flexibility
  • Market Protection: Avoid selling investments during downturns
  • Staying in Your Home: Tap into appreciation without having to sell or downsize
  • Covering Costs: Fund home repairs, long-term care, or other expenses
  • Lifestyle Enhancement: Stretch your retirement budget or increase peace of mind