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Reverse Mortgage Calculator


Calculating a reverse mortgage should be done with the help of a reverse mortgage lender who can provide specific details for your situation and advise you on reverse mortgage disadvantages and benefits.

Preliminary reverse mortgage requirements include:

- Both homeowners are 62 years or older

- Property is your primary residence

- Not delinquent on any Federal debt

- Property is a single family home, HUD approved condo or FHA approved manufactured home

- Own the property outright or have a small mortgage balance

If you qualify for a reverse mortgage you are required to first meet with an HECM Reverse Mortgage Counselor to review your options and make an informed decision.

You can ask questions or find a HECM Counselor here.

How much home equity is required for a reverse mortgage?

Substantial equity in your home is required.  Your home equity is calculated by taking the value of your home and subtracting all mortgage liens.

The amount of equity required varies based on your age and the interest rate of your reverse mortgage loan.  The older that you are the less home equity that is required to qualify.

The below table is an approximate guide to the percentage of home equity required based on a 5.5% reverse mortgage rate.

reverse mortgage calculator

The left or y-axis shows the minimum home equity % required. A borrower needs this much home equity or greater to qualify. The bottom or x-axis is the age of the youngest borrower.

So for example, a 70 year old borrower would need approximately 40% home equity or greater to qualify for a reverse mortgage.

Reverse Mortgage Calculator

Now that you have determined that you meet the basic requirements and have enough equity in your home, you can use the reverse mortgage calculator to approximate how much cash you can receive.

The calculator is just a guide and you should consult a lender to obtain a reverse mortgage quote for your situation.

calculate

Reverse Mortgage Calculator Results

The third line down, “Available Loan”, is the amount of money that you would be eligible to receive with a reverse loan.  If this amount is less than your mortgage
lien you have a shortfall and you would not qualify.

These numbers are an approximation and will be different with a change in interest rates.  Talk with a reverse mortgage consultant today to calculate an exact quote for you or answer further questions.

Click Reverse Mortgage Lenders to learn about your options, or discuss the loan calculator results with a professional by filling in the form below.


 

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Here are few recommended articles about Reverse Mortgage to get you started. Our goal is educate you as well as help you find the right mortgage lender.

Not Enough Equity? HECM Reverse Mortgage Statistics
Reverse Mortgage Rates
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