Estimate reverse mortgage proceeds and the loan balance growth over time.
The loan balance compounds while the home appreciates more slowly, so equity is consumed over time. Because these loans are non-recourse, the borrower never owes more than the home's value even if the balance exceeds it. Upfront costs are substantial, which makes reverse mortgages expensive for short tenures and better suited to those intending to remain in the home long term.
Reverse Mortgage (HECM)
Principal limit = home value × a factor rising with age and falling with interest rate
This is a general illustration, not financial, tax or legal advice. Rules, thresholds and rates vary by jurisdiction and change frequently, and individual circumstances materially affect outcomes. Consult a qualified adviser before making any decision based on these figures.
Principal limit = home value × a factor rising with age and falling with interest rate The loan balance compounds while the home appreciates more slowly, so equity is consumed over time. Because these loans are non-recourse, the borrower never owes more than the home's value even if the balance exceeds it.
Upfront costs are substantial, which makes reverse mortgages expensive for short tenures and better suited to those intending to remain in the home long term.
This calculator takes 6 inputs: Home value, Youngest borrower age, Existing mortgage balance, Expected interest rate, Upfront costs, Years to project. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.