Reverse Mortgage Calculator

Using a reverse mortgage calculator is an effective way to estimate how much you can borrow against your home equity. While a typical mortgage requires monthly payments to build equity, a reverse mortgage lets you convert part of your home's value into cash. Understanding this process allows you to plan for your financial future and ensure you maximize your benefits.

MoneyGeek's reverse mortgage calculator can help you understand the potential loan amount. Let's dive into the information you need to provide and what the results mean.

Deciding on a reverse mortgage is a significant step. Let’s explore several scenarios to help you determine when a reverse mortgage aligns with your financial goals and lifestyle. Knowing when it makes sense — and when it doesn’t — will help you be more strategic.

Linda is a 70-year-old retired school teacher living in the suburbs of a mid-sized city. She now enjoys her retirement, keeping herself occupied with gardening, book club meetings and her grandchildren. Linda wants to maintain her lifestyle without compromising her independence, but her savings are dwindling.

Linda owns her home outright and is assuming tapping into its equity to supplement her pension and social security. Having a monthly income stream to cover her expenses, from health care to home maintenance, without the burden of monthly repayments leads her to consider a reverse mortgage.

Robert, a 65-year-old widower, recently retired from a long career in civil engineering. He spends his days working on intricate woodworking projects and volunteering at the local maritime museum. His home, filled with memories and personal projects, is a place he deeply cherishes.

Unexpected medical bills and the desire to financially assist his grandchildren with their college education have led him to explore ways to leverage his home's equity. He would also like to leave his home to his children as part of his legacy. That makes him hesitant about a solution that would significantly eat into the home's equity over time and require his children to pay off a debt to keep their home.

Jasmine, a 68-year-old former music teacher and a local choir director, still fills her days with music and community service in her small town. She’s deeply attached to her home, which has been in her family for generations. It also serves as a community gathering spot for local music events.

Jasmine wants to convert part of her home into a small community music studio. She is considering a reverse mortgage to finance this project. However, Jasmine is also wary of diminishing her home’s equity; she wants to leave a substantial legacy to her children.

Here are some immediate steps you might consider taking after calculating your potential reverse mortgage:

Comparing a reverse mortgage and a HELOC can help homeowners choose the right option. Both let you access home equity, but while a reverse mortgage provides income without repayments, a HELOC requires monthly payments. Knowing these differences can lead to more informed choices. Explore our comparison table for more insights.

Using a reverse mortgage calculator often brings up various questions for homeowners. We've addressed the most common ones to help you understand how to use the tool effectively. Learn how factors like home value and borrower age influence your loan estimate.