Reverse Mortgage Calculator
Update the pre-filled example below with your own information to see a personalized calculation.
Sample Proceeds
$259,350
Mortgage Payoff
$90,000
Remaining Equity
$310,650
Cash Available
$147,621
Values are only an estimate based on your inputs and are provided for informational purposes only. Actual proceeds vary based on (i) your home's appraised value, (ii) loan amount (iii) interest rates, and (iv) actual closing costs based on your geographic location and the third-party settlement service providers selected. Additionally, certain property charges may be set-aside from loan proceeds reducing the amount otherwise available for distribution if the financial assessment requires the establishment of a Life Expectancy Set Aside ("LESA") account. HomeSafe values are for the HomeSafe standard product only.
You may be eligible for even more.
Speak to a licensed specialist to better understand your options at (800) 841-4626
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Remaining Mortgage Balance
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Real reverse success stories
See how thousands of homeowners nationwide have trusted our suite of home equity solutions to create peace of mind and find joy in living their next chapter to the fullest.
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How a reverse mortgage compares
Unlike a HELOC or personal loan—where you make monthly payments—a reverse mortgage allows you to defer repayment2 until you leave, sell, or transfer your home, giving you access to a portion of your home’s equity.
2The borrower must meet all loan obligations, including meeting all loan obligations under the first lien mortgage, living in the property as the principal residence and paying property charges, including property taxes, fees, hazard insurance. The borrower must maintain the home. If the homeowner does not meet these loan obligations, then the loan will need to be repaid.
7If no balance on LOC there may be no monthly mortgage payment required.
8Negative amortization means that the amount you owe grows over time because unpaid interest and certain fees are added to your principal balance (common with reverse mortgages that don’t require monthly payments). Interest-only payments (e.g., many HELOCs) cover just interest for a time, so the balance doesn’t decrease and later payments may rise during the repayment phase. Fully amortizing loans include both principal and interest payments each month, so the balance steadily declines to $0.
9There is no minimum credit score and a full financial assessment required for a HECM. Certain proprietary products have a minimum credit score requirement of 640.
This is general information about HELOCS and personal loans—terms vary by lender. Chart does not display all lending products available in the market.
Reverse mortgage pros and cons
Reverse mortgages can be a powerful tool, but they’re not for everyone. Considering the pros and cons can help you decide if this strategic tool fits your situation and goals.
Pros
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Tax-free cash for virtually anything10
Your loan proceeds are not considered income, which gives you access to usable cash without tapping other investments and creating a taxable event.
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Flexible payout options
You can access any remaining equity in a way that best suits your lifestyle, including as a lump sum, monthly installments, or as a line of credit that’s ready when you need it.
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Continue to own and live in your home3
The property title remains in your name, and you can continue living in your home as long as you wish, so long as you comply with the loan terms.
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Eliminate your monthly mortgage2
A reverse mortgage pays off your existing mortgage (if any), freeing up your budget from those payments and leaving more cash in your pocket to use as you see fit.
Cons
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Loan balance accrues interest
Because your funds come in the form of a loan against your home equity, the balance accrues interest and will grow over time.
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Upfront costs
Like many mortgage products, the loan has closing costs and fees, but many of these can be rolled into the loan and are not paid out of pocket.
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Estate impacts
Because the loan draws from equity and accrues interest on the amount borrowed, it is likely to impact what your heirs inherit. But regardless of how much equity remains when the loan comes due, they will not inherit the debt.
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Potentially not enough
There is a chance that your loan may not be enough to meet your needs, but even if your proceeds run out, you still own your home and can stay in it as long as you meet the loan requirements.3
2The borrower must meet all loan obligations, including living in the property as the principal residence and paying property charges, including property taxes, fees, hazard insurance. The borrower must maintain the home. If the homeowner does not meet these loan obligations, then the loan will need to be repaid.
3The right to remain in the home is contingent on paying property taxes and homeowner’s insurance, maintaining the home, and complying with the loan terms.
Related articles
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Six smart ways to use reverse mortgage proceeds
Reverse mortgage borrowers may use their proceeds for virtually anything they want. Here are six ideas for using them smartly.
Read article from Six smart ways to use reverse mortgage proceeds
How does a reverse mortgage work?
A reverse mortgage allows an eligible borrower to access their home equity. How does a reverse mortgage work? Here’s what you need to know.
Read article from How does a reverse mortgage work?
How much money can you get from a reverse mortgage?
A reverse mortgage loan allows borrowers to tap into a portion of the equity in their homes as a lump sum payout, regular payouts, a line of credit, or a combination of
Read article from How much money can you get from a reverse mortgage?Frequently asked questions
With a reverse mortgage, you — not the lender, own and control your home. You can’t be kicked out so long as you uphold the terms of the loan.* As with a traditional forward mortgage, the lender simply puts a lien on the property to ensure the loan will be repaid. Learn More
*The right to remain in the home is contingent on paying property taxes and homeowner’s insurance, maintaining the home, and complying with the loan terms.
No. A reverse mortgage is a “non-recourse” loan, which means that if you default on the loan, or if the loan cannot otherwise be repaid, the lender can only enforce the debt through the sale of the property and cannot look to your other assets (or your estate’s assets) to meet any outstanding balance. If the loan balance is higher than the home’s value, your heirs will not be responsible for paying the difference when the home is sold to repay the balance. Learn More
For starters, you’ll typically need to be a homeowner age 62 or older. However, Finance of America also offers exclusive options in certain states for homeowners as young as 55*. You’ll generally need about 50% equity in your home and must complete a financial assessment to ensure you can meet the loan’s terms. Additional requirements apply—speak with a loan officer for the complete list. Learn More
*Minimum age requirements vary by state and loan type. 62 is the minimum age for a HECM. Certain proprietary products have minimum ages as low as 55.
Eligible property types for reverse mortgages include single-family homes, FHA-approved condominiums, and certain types of manufactured homes.
The most common reverse mortgage is the Home Equity Conversion Mortgage (HECM). These mortgages are federally insured and regulated by the U.S. Department of Housing and Urban Development (HUD). Individual lenders may also offer proprietary reverse mortgages available in certain states. Because proprietary loans are not federally-insured, the lenders have more flexibility to set their terms including lower borrower age requirements or higher loan amounts. Reverse mortgages are available in all states, but specific rules and regulations can vary, affecting the availability of different types of loans and the terms offered.
Yes, reverse mortgages are available in all states, but specific rules and regulations can vary, affecting the availability of different types of loans and the terms offered.
Important legal disclaimers
1Minimum age requirements vary by state and loan type. 62 is the minimum age for a HECM. Certain proprietary products have minimum ages as low as 55.
2The borrower must meet all loan obligations, including living in the property as the principal residence and paying property charges, including property taxes, fees, hazard insurance. The borrower must maintain the home. If the homeowner does not meet these loan obligations, then the loan will need to be repaid.
3The right to remain in the home is contingent on paying property taxes and homeowner’s insurance, maintaining the home, and complying with the loan terms.
4As of November 2025. Rating based on verified reviews from Trustpilot.com.
5Finance of America is listed as Best Reverse Mortgage Lender by Bankrate in Best reverse mortgage lenders in 2025.
6Finance of America is listed as Best Reverse Mortgage Companies by money.com in Finance of America Reverse Mortgages Review. Finance of America is a paid advertiser with money.com.
7If no balance on LOC there may be no monthly mortgage payment required.
8Negative amortization means that the amount you owe grows over time because unpaid interest and certain fees are added to your principal balance (common with reverse mortgages that don’t require monthly payments). Interest-only payments (e.g., many HELOCs) cover just interest for a time, so the balance doesn’t decrease and later payments may rise during the repayment phase. Fully amortizing loans include both principal and interest payments each month, so the balance steadily declines to $0.
9There is no minimum credit score and a full financial assessment required for a HECM. Certain proprietary products have a minimum credit score requirement of 640.
10Not tax advice. Consult a tax professional.
