Reverse Mortgage Calculator
Estimate the amount you can receive from a reverse mortgage based on your age, home value, and current interest rate.
Published by:
isCalculator Editorial Team
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How to use this tool?
This calculator estimates the principal limit and potential monthly payments for a reverse mortgage. Follow these steps:
- Enter Home Value ($): Input the current market value of your home (e.g., 300000). Must be greater than 0.
- Enter Your Age (years): Input your age between 55 and 100. Older ages yield higher loan amounts.
- Enter Interest Rate (%): Input the expected loan interest rate (e.g., 4.5). Use 0 or more.
- Enter Expected Home Appreciation (%): Optional, defaults to 2%. Enter 0 or more if you expect no growth.
- Click "Calculate": Press the button or hit Enter on any input field.
Results:
- Estimated Loan Amount: The principal limit you can borrow, based on age, home value, and interest rate (includes a 0.5% MIP).
- Monthly Payment (if chosen): An estimate of equal monthly payments over 30 years from the loan amount.
Note: All values are in US dollars. The calculator uses simplified factors and assumes a 30-year term. Consult a professional for actual loan terms.
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Frequently Asked Questions
A reverse mortgage is a loan for homeowners aged 55 or older that allows you to convert part of your home equity into cash without selling your home.
The loan amount is based on your age, home value, and current interest rate. Older borrowers and higher home values generally result in a larger loan.
The loan is repaid when you sell the home, move out permanently, or pass away. Interest and fees accumulate over time.
