Pro's and Con's
Welcome to our Reverse Mortgage Calculator—your personalized tool for estimating how much you may be eligible to receive through a reverse mortgage. Whether you're considering monthly income, a lump sum, or a line of credit, this calculator offers accurate projections based on your unique financial and property details. Use it to explore your options and make informed decisions with confidence.
Is a Reverse Mortgage Right for You?
A reverse mortgage could offer the financial flexibility to help you live the retirement you’ve envisioned—whether that means paying off medical bills, making home improvements, or simply freeing up extra cash. But like any major financial decision, it’s important to weigh both the benefits and risks.
If you're 62 or older and have sufficient equity in your home, you may qualify for a Home Equity Conversion Mortgage (HECM)—commonly known as a reverse mortgage. Many seniors choose this option for its lifestyle-friendly features, including the ability to stay in their home without monthly mortgage payments and access funds in a way that suits their needs.
Benefits of a Reverse Mortgage
- Receive funds as a lump sum, monthly payments, line of credit, or a combination
- No monthly mortgage payments required
- Proceeds are generally not taxed as income (though property taxes must still be paid)
- Heirs never repay more than the home’s value
- Remaining equity after loan repayment goes to your heirs
Considerations & Risks
- Loan balance increases over time due to interest and fees
- Estate value may decrease as loan proceeds are used
- Upfront and ongoing feesmay be higher than traditional mortgages
- Initial FHA Mortgage Insurance Premium
- Annual FHA Mortgage Insurance Premium
- Loan origination fees
- While Social Security and Medicare are unaffected, needs-based programs like Medicaid may be impacted
Ready to Explore Your Options?
To review your personalized loan options and determine if a HECM is right for you, speak with a Loan Advisor today.
Important Notes
- Borrowers must meet HUD’s financial eligibility criteria
- Lump-sum disbursement is available only with fixed-rate loans
- You must live in the home as your primary residence, pay property taxes and insurance, and maintain the home per FHA guidelines. Failure to do so may result in loan default and foreclosure
- Funds are generally not considered taxable income, but consult a financial advisor or government agency to understand potential impacts on taxes or benefits