Free Reverse Mortgage Calculator for Homeowners 62+

The TRU Story: You Do Not Give Your Home to the Bank

• Myth: The bank owns my home. Fact: Your name stays on the deed. The lender only records a lien, like any mortgage.
• Myth: My kids will inherit debt. Fact: An FHA reverse mortgage (HECM) is non-recourse. Heirs never owe more than the home is worth, and they keep any equity left over.
• Myth: I'll have to make monthly payments. Fact: No monthly mortgage payment is required. You may make voluntary payments any time with no penalty if you want to slow the balance growth.
• Myth: It's a risky private deal. Fact: The HECM is insured by the FHA and governed by HUD rules, and you must meet with an independent HUD-approved counselor before you apply.
• Myth: They can kick me out. Fact: You can live in the home for the rest of your life as long as it is your primary residence and you keep paying property taxes, homeowners insurance and upkeep.

Read the full story: do you lose your home with a reverse mortgage?

What Is a Reverse Mortgage, in Plain English?

A reverse mortgage is an FHA-insured loan for homeowners 62 and older that turns part of your home equity into cash. There is no required monthly mortgage payment. The balance grows over time instead of shrinking. It is repaid when you sell, move out permanently, or pass away.

Do I Qualify?

• The youngest homeowner is 62 or older.
• The home is your primary residence.
• You have substantial equity. Most homeowners who qualify have about 50% or more equity, because any existing mortgage is paid off first from the loan.
• You can keep up with property taxes, insurance and upkeep.
• You complete HUD-approved counseling.
• The home meets FHA property standards.

How a Reverse Mortgage Can Help in Your Golden Years

• Retire your current mortgage payment and keep that money each month.
• Add steady monthly income for as long as you live in the home.
• Keep a growing line of credit for emergencies, health costs or repairs.
• Pay for in-home care or safety upgrades so you can age in place.
• Give yourself room to delay Social Security or avoid selling investments in a down market.
• Buy a home that fits your next chapter with a HECM for Purchase.

A reverse mortgage is not right for everyone. Read the honest downsides before you decide.

Ways to Receive Your Money

You can take a lump sum (fixed rate only), a line of credit that grows, monthly payments for life (tenure), monthly payments for a set number of years (term), or a combination.

How This Reverse Mortgage Calculator Works

The calculator uses three inputs: the age of the youngest homeowner or spouse, your estimated home value, and your current mortgage balance. Amounts are based on the youngest spouse's age, even if they will not be on the loan. The 2026 FHA lending limit is $1,249,125. Any existing mortgage is paid off first from the proceeds. Results are estimates, not an offer of credit or a loan approval. Higher-value homes may fit a jumbo or proprietary reverse mortgage.

Frequently Asked Questions

Do you lose your home with a reverse mortgage?

No. A reverse mortgage is a mortgage, not a sale. You keep the title and your name stays on the deed. You remain in the home as long as you keep paying property taxes, homeowners insurance, and maintenance, and continue to live there.

Who owns the home with a reverse mortgage?

You do. The lender records a lien, just like any other mortgage, but ownership and the deed stay in your name. The bank does not take ownership of your home.

Can my heirs keep the house?

Yes. A reverse mortgage does not change who inherits the property. Your heirs can keep the home by refinancing or paying off the loan balance, and if the home is sold for more than the balance, every dollar of that difference goes to your estate.

Can I owe more than my home is worth?

No. HECMs are non-recourse loans. If the home eventually sells for less than the loan balance, FHA insurance covers the difference. You and your heirs are never billed for the shortfall.

Is a reverse mortgage an FHA loan?

The most common reverse mortgage, the Home Equity Conversion Mortgage (HECM), is insured by the FHA and governed by HUD rules. Jumbo and proprietary reverse mortgages are private programs that are not FHA-insured.

What are the age requirements for a reverse mortgage?

For an FHA-insured HECM, the youngest borrower must be at least 62. Some private jumbo reverse mortgage programs start at age 55 or 60 depending on the program and the state.

Reverse Mortgage Questions Answered

• Do You Lose Your Home With a Reverse Mortgage? No. Here Is the TRU Story
• How a Reverse Mortgage Can Help in Retirement
• What Happens to a Reverse Mortgage When the Borrower Dies?
• Reverse Mortgage Costs and Fees, Explained Simply
• Does a Reverse Mortgage Affect Social Security, Medicare or Medicaid?
• Reverse Mortgage vs. HELOC vs. Cash-Out Refinance
• Buying a Home With a Reverse Mortgage (HECM for Purchase)
• Reverse Mortgage When One Spouse Is Under 62
• How to Spot a Reverse Mortgage Scam