Keyword focus: reverse mortgage calculator
Reverse Mortgage Calculator
Convert home equity into tax-free income while planning heirs and long-term housing goals.
Explore reverse options
Model lump sum, line of credit, and tenure payments using realistic fees.
Reverse mortgages let homeowners 62+ tap equity without monthly payments. This guide outlines payout types, costs, and the effect on estate planning.
What to review
- Compare payout options and confirm which fits your retirement income plan.
- Track loan balance growth over time to plan for heirs or future downsizing.
- Estimate mandatory counseling and mortgage insurance costs upfront.
Quick tips
- Attend HUD counseling
- Counseling is required before application. Bring calculator scenarios to discuss affordability.
- Budget for taxes and insurance
- You must keep taxes, insurance, and maintenance current. Add them to the calculator so cash flow stays positive.
- Protect heirs
- Communicate payoff options with family. The loan becomes due when you move out or pass away.
Common questions
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How much can I borrow?
It depends on your age, home value, interest rate, and FHA lending limits. Enter realistic values to estimate principal limits.
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Do I risk losing my home?
You keep ownership, but must maintain the property and pay taxes/insurance. Otherwise the loan can default.
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What happens when I move?
The reverse mortgage becomes due. Heirs can repay the balance or sell the home. Use the calculator to forecast equity after payoff.