Reverse mortgage calculator
Use this calculator to figure the annual growth of your loan balance for a lump-sum payment or series of monthly payments from a reverse mortgage.
Reverse mortgage inputs:Press spacebar to hide inputs |
Balance by Yearpress spacebar to hide graph |
How does a reverse mortgage work?
A reverse mortgage is a special type of home equity loan for seniors age 62 and above. It allows you to borrow against your home equity without having to make any loan payments for as long as you live in the home. As such, it can be a useful financial tool for persons on a fixed income.
A reverse mortgage allows you to borrow money in a variety of ways. You can receive a single lump sum of cash, all at once. You can set up a line of credit to draw on as needed. Or you can receive a series of regular payments over a period of time. You can also have a combination of these.
When you have a reverse mortgage, you don't have to make any payments but interest charges accrue over time. When you vacate the home, the loan comes due and the principal and interest charges are paid at that time, often by selling the home. Any money left over goes to you or your estate.
With a reverse mortgage, you can never owe more than your home is worth. However, it's good to know how quickly the loan balance will increase, so you can figure how much equity you will have remaining at a given point in time. An online reverse mortgage calculator, such as this one, can help.
Using the reverse mortgage calculator
This particular reverse mortgage calculator is designed to allow you to calculate how quickly your loan balance will increase after receiving a lump sum payment, a series of monthly payments or a combination of both.
Simply enter the amount of the lump sum received and the size of the monthly loan advance in the spaces indicated. If you are receiving just one of these, enter "0" for the other. Then enter the interest rate you're being charged and the number of years for which you wish to calculate accumulated charges.
The chart will show the increase in your loan balance over time. Click "view report" for a detailed breakdown of the interest charges and loan balance on a year-by-year basis.
Other Mortgage and Financial Calculators
In addition to the standard mortgage calculator, this page lets you access more than 100 other financial calculators covering a broad variety of situations. Choose from calculators covering various aspects of mortgages, auto loans, investments, student loans, taxes, retirement planning and more.
- Adjustable Rate Mortgage Calculator
- Interest Only ARM Calculator Overview
- How much can I borrow?
- Mortgage comparison: 15 years vs 30 years
- Balloon Loan Calculator
- ARM vs. Fixed-Rate Mortgage Calculator
- APR Calculator for Adjustable Rate Mortgages
- Bi-weekly Payment Calculator
- Blended Rate Mortgage Calculator
- Fixed Rate Mortgage vs. Interest Only ARM calculator
- Mortgage Tax Savings Calculator
- Rent vs. Buy Calculator
- Mortgage Payoff Calculator
- Mortgage Required Income Calculator
- Interest-Only Mortgage Calculator
- Mortgage Qualifying Calculator
- Mortgage Calculator Simple (PITI) - Mortgage Calculation
- Mortgage APR Calculator
- Bi-Weekly Payment Calculator For an Existing Mortgage
- Enhanced Loan Calculator
- Existing Loan Calculator
- Mortgage Debt Consolidation Calculator
- Mortgage Points Break-Even Calculator
- Refinance Break-Even Calculator
- Refinance Calculator
- Auto Rebate vs. Low Interest Financing
- Bi-weekly Payments for an Auto Loan Calculator
- Dealer Financing vs. Credit Union Financing Calculator
- Auto Lease vs. Auto Buy Calculator
- Home Equity vs. Auto Loan Calculator
- Auto Loan Calculator
- Bi-weekly Payments for an Auto Loan Calculator
- Auto Loan Payoff Calculator
- Retirement Income Calculator
- 401(k) Net Unrealized Appreciation Calculator
- 401(k) Savings Calculator
- 403(b) Savings Calculator
- 457 Savings Calculator
- 72(t) Distribution Impact Calculator
- Beneficiary Required Minimum Distributions
- Pension Plan Retirement Options
- Retirement Contribution Effects Calculator
- Retirement Planner
- Roth vs. Traditional IRA Calculator
- 72(t) Distribution Options Calculator
- Social Security Benefits Calculator