A reverse mortgage lets older homeowners tap equity. See a rough available amount.
A reverse mortgage estimator gives a rough idea of the funds a homeowner age 62 or older might access by borrowing against home equity, without a monthly mortgage payment.
A reverse mortgage lets older homeowners convert equity into cash, a lump sum, line of credit, or monthly payments, with no required monthly repayment; the loan is repaid when the home is sold or the owner leaves. The amount available (the principal limit) rises with age and depends on home value, interest rates, and lending limits.
Reverse mortgages carry significant fees and interest that compounds on a growing balance, reducing the equity left to heirs. You must keep up with taxes, insurance, and upkeep to avoid default. They can help some retirees stay in their home, but the decision is complex, HUD requires counseling first. This estimate is illustrative only.
Generally homeowners age 62 or older with substantial equity, in a home that is their primary residence. HUD counseling is required for the common HECM program.
No monthly mortgage payments are required. The balance grows over time and is repaid when the home is sold or the owner permanently leaves.
Fees are high, interest compounds on a rising balance, and it reduces the equity left to heirs. You must still pay taxes, insurance, and maintenance.
See the exact formula and a worked example on our methodology page.