Understanding Our Reverse Mortgage Calculator
If you're a homeowner aged 62 or older, a reverse mortgage could be a way to tap into your home equity. Our calculator helps you estimate potential borrowing amounts. Here's how to use it and interpret the results.
How to Use the Calculator
- Home Value: Estimate your home's current market value.
- Age: Input the age of the youngest borrower (must be 62+).
- Mortgage Balance: Enter your current mortgage balance, if any.
- Interest Rate: Use the expected interest rate (your lender can provide current rates).
- Calculate: Click the button to see your estimated available funds.
Understanding the Results
The calculator estimates funds available based on:
- Your home's value (up to the FHA lending limit)
- Your age (or the youngest borrower's age)
- Current interest rates
- Your existing mortgage balance
Note that this is a simplified calculation. Actual loan amounts may vary based on additional factors like upfront mortgage insurance premiums and closing costs.
Next Steps
After using the calculator:
- Consult a Financial Advisor: Discuss if a reverse mortgage aligns with your financial plan.
- Meet with a HUD-Approved Counselor: They'll explain costs, benefits, and risks.
- Get Multiple Quotes: Compare offers from several lenders.
- Review Terms Carefully: Understand all conditions before signing.
Remember, while our calculator provides a starting point, actual eligibility and loan amounts can vary. Always consult with professionals before making financial decisions.