Reverse Mortgages Calculator

Introduction: Explore the potential reverse mortgage amount using our Reverse Mortgages Calculator. This tool helps you estimate the amount you may qualify for based on your home value, existing mortgage balance, age, interest rate, and loan term.

Formula: The reverse mortgage amount is calculated using the formula: Reverse Mortgage Amount=(Home Value−Mortgage Balance)×(1+Interest Rate100×Loan Term)Age×12Reverse Mortgage Amount=Age×12(Home Value−Mortgage Balance)×(1+100Interest Rate​×Loan Term)​

How to Use:

  1. Enter the home value.
  2. Input the current mortgage balance.
  3. Specify your age.
  4. Enter the interest rate.
  5. Provide the loan term in years.
  6. Click the “Calculate” button.
  7. View the estimated reverse mortgage amount.

Example: Suppose your home value is $300,000, the current mortgage balance is $100,000, your age is 65, the interest rate is 4%, and the loan term is 15 years. Use the Reverse Mortgages Calculator to estimate your reverse mortgage amount.


  1. What is a reverse mortgage?
    • A reverse mortgage is a type of loan that allows homeowners to convert part of their home equity into cash.
  2. Who is eligible for a reverse mortgage?
    • Eligibility is generally based on age, home value, and equity. Consult with a lender for specific requirements.
  3. How is the reverse mortgage amount determined?
    • The amount is influenced by factors like home value, current mortgage balance, age, interest rate, and loan term.
  4. Can I get a reverse mortgage if I still have a mortgage on my home?
    • Yes, you can qualify for a reverse mortgage even if you have an existing mortgage.
  5. Is the reverse mortgage amount taxable?
    • Typically, reverse mortgage proceeds are not considered taxable income. Consult a tax advisor for personalized advice.
  6. What happens if I outlive the reverse mortgage term?
    • You can continue to live in your home, and repayment is usually triggered by the sale of the home or other specified events.
  7. Can I use the reverse mortgage amount for any purpose?
    • Yes, you have flexibility in using the funds, whether for living expenses, home improvements, or other needs.
  8. Are there fees associated with a reverse mortgage?
    • Yes, fees may include closing costs, servicing fees, and mortgage insurance. Consult with lenders to understand the costs.
  9. Is a reverse mortgage a good option for everyone?
    • It depends on individual circumstances. Seek guidance from financial advisors to determine suitability.
  10. Can I pay off a reverse mortgage early?
    • Yes, you can pay off a reverse mortgage at any time without prepayment penalties.

Conclusion: Use the Reverse Mortgages Calculator to gain insights into the potential reverse mortgage amount based on your unique circumstances. While this tool provides an estimate, consult with a reverse mortgage lender for detailed information and personalized advice. Adjust inputs to analyze various scenarios and make informed decisions about utilizing your home equity.

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