Reverse Home Loan Calculator
Calculate reverse mortgage loan amounts, monthly income, and projected loan balance. Plan your reverse mortgage without personal information. See how much income you can get from reverse mortgage and how the loan balance grows over time.
Loan Details
Current appraised value of your home
Must be at least 62 years old
Enter as percentage (e.g., 5.5 for 5.5%)
Receive all available funds at once
Loan Summary
Home Value
$500,000.00
Available Loan Amount
$285,000.00
Principal Limit Factor: 57.00%
Net Loan Amount
$285,000.00
After upfront costs
Projected Loan Balance
Year 5
$374,975.58
Year 10
$493,356.78
Year 15
$649,111.38
Year 20
$854,038.29
Projected Home Equity
Year 5
$205,832.82
Year 10
$181,319.99
Year 15
$134,604.49
Year 20
$56,339.21
Loan Schedule
| Year | Beginning Balance | Interest Accrued | Ending Balance | Home Value | Home Equity |
|---|---|---|---|---|---|
| 1 | $285,000.00 | $16,076.24 | $301,076.24 | $515,207.98 | $214,131.74 |
| 2 | $301,076.24 | $16,983.07 | $318,059.31 | $530,878.52 | $212,819.22 |
| 3 | $318,059.31 | $17,941.04 | $336,000.35 | $547,025.70 | $211,025.35 |
| 4 | $336,000.35 | $18,953.06 | $354,953.41 | $563,664.01 | $208,710.60 |
| 5 | $354,953.41 | $20,022.16 | $374,975.58 | $580,808.39 | $205,832.82 |
| 6 | $374,975.58 | $21,151.57 | $396,127.15 | $598,474.23 | $202,347.09 |
| 7 | $396,127.15 | $22,344.68 | $418,471.83 | $616,677.40 | $198,205.57 |
| 8 | $418,471.83 | $23,605.10 | $442,076.93 | $635,434.23 | $193,357.30 |
| 9 | $442,076.93 | $24,936.61 | $467,013.54 | $654,761.57 | $187,748.03 |
| 10 | $467,013.54 | $26,343.23 | $493,356.78 | $674,676.77 | $181,319.99 |
| 11 | $493,356.78 | $27,829.20 | $521,185.98 | $695,197.71 | $174,011.73 |
| 12 | $521,185.98 | $29,398.99 | $550,584.97 | $716,342.82 | $165,757.85 |
| 13 | $550,584.97 | $31,057.32 | $581,642.28 | $738,131.07 | $156,488.78 |
| 14 | $581,642.28 | $32,809.20 | $614,451.48 | $760,582.03 | $146,130.55 |
| 15 | $614,451.48 | $34,659.89 | $649,111.38 | $783,715.86 | $134,604.49 |
| 16 | $649,111.38 | $36,614.98 | $685,726.36 | $807,553.33 | $121,826.97 |
| 17 | $685,726.36 | $38,680.36 | $724,406.72 | $832,115.84 | $107,709.12 |
| 18 | $724,406.72 | $40,862.23 | $765,268.95 | $857,425.44 | $92,156.49 |
| 19 | $765,268.95 | $43,167.18 | $808,436.13 | $883,504.85 | $75,068.72 |
| 20 | $808,436.13 | $45,602.15 | $854,038.29 | $910,377.50 | $56,339.21 |
About Reverse Home Loans
A reverse home loan, also known as a reverse mortgage, is a financial product designed for homeowners aged 62 and older. It allows you to convert a portion of your home equity into cash without making monthly mortgage payments.
How reverse mortgage amount is calculated: The available loan amount depends on several factors including your age, home value, and current interest rates. Generally, older borrowers and higher home values result in larger available loan amounts. The principal limit factor typically ranges from 30% to 70% of your home value.
How much income from reverse mortgage: You can receive funds in three ways: as a lump sum payment, as monthly income payments, or through a line of credit that you can draw from as needed. The monthly income amount depends on your available loan amount, interest rate, and the length of time you want to receive payments.
Payment options: With a reverse mortgage, you typically don't make monthly payments. Instead, interest accrues on the loan balance over time. The loan becomes due when you sell the home, move out permanently, or pass away. The loan balance grows over time due to accrued interest, but you retain ownership of your home.
Reverse mortgage home purchase: You can also use a reverse mortgage to purchase a new home. This allows you to buy a new property without making monthly mortgage payments, using the equity from your current home or a down payment combined with reverse mortgage proceeds.
Important considerations: While reverse mortgages provide financial flexibility, it's important to understand that the loan balance will grow over time, potentially reducing the equity you can pass on to heirs. Always consult with a qualified financial advisor and reverse mortgage counselor before making decisions.