Reverse Mortgage Calculator — See What Your Home Equity Could Do For You
A reverse mortgage lets homeowners 62 or older convert home equity into tax-free cash — without selling the home or making monthly mortgage payments. Use this calculator to see how much you could access based on your age, home value, and current mortgage balance.
Nate Jones · NMLS #304056 · New American Funding
A reverse mortgage lets homeowners 62 or older convert home equity into tax-free cash — without selling the home or making monthly mortgage payments. Use this calculator to see how much you could access based on your age, home value, and current mortgage balance.
Your Numbers
Enter $0 if your home is paid off
Must be 62 or older to qualify
Current reverse mortgage rates typically range 6.5-8.5%
Results
Estimated Available Cash
$220,000
Tax-free. No monthly payments required.
Your Home's Principal Limit
$220,000
Maximum FHA will lend based on your age and home value
Equity You Keep
$280,000
Remaining equity stays in your estate
Monthly Payment Required
$0
You never make a mortgage payment. Loan repaid when home is sold.
What Could You Do With This Equity?
Eliminate Monthly Payments
Use $220,000 to pay off your existing mortgage entirely — eliminating your monthly payment and freeing up $0 every month.
Monthly Income Stream
Receive approximately $1,833 per month for 10 years as a steady tax-free income stream.
Line of Credit
Keep $220,000as a growing line of credit — accessible when you need it, growing at the loan interest rate when you don't.
These are estimates based on simplified HECM guidelines. Actual amounts depend on current interest rates, your specific property, and FHA appraisal. Nate will run your exact numbers — free, no credit pull.
How a Reverse Mortgage Works
You keep the title to your home
FHA insures the loan through the HECM program
You receive cash, monthly payments, or a line of credit
Loan is repaid when you sell, move out, or pass away — never before
Who Qualifies for a Reverse Mortgage
- ✓Age 62 or older (youngest borrower)
- ✓Primary residence only
- ✓Sufficient home equity
- ✓Home must meet FHA property standards
- ✓Must complete HUD-approved counseling
- ✓No income or credit score minimum
Reverse Mortgage Pros and Cons
Pros
- ✓No monthly mortgage payments
- ✓Tax-free cash proceeds
- ✓Stay in your home
- ✓Non-recourse loan — you never owe more than the home is worth
- ✓FHA insured
- ✓Funds can be used for anything
Cons
- ✗Loan balance grows over time
- ✗Reduces estate value for heirs
- ✗Must maintain home and pay taxes/insurance
- ✗Upfront costs higher than conventional
- ✗Must be primary residence
Common Questions About Reverse Mortgages
Do I still own my home with a reverse mortgage?
Yes. You keep full title and ownership of your home. The lender places a lien on the property — the same as any other mortgage — but you remain the owner. You can sell at any time and keep any remaining equity.
What happens when I pass away or move out?
The loan becomes due when the last borrower permanently leaves the home. Your heirs can sell the home to repay the loan and keep any remaining equity — or refinance into a conventional mortgage to keep the home. They are never responsible for more than the home's value.
Can I get a reverse mortgage if I still have a mortgage?
Yes. A reverse mortgage can pay off your existing mortgage balance at closing. This is one of the most common uses — eliminating a monthly mortgage payment in retirement.
Will a reverse mortgage affect my Social Security or Medicare?
No. Reverse mortgage proceeds are not considered income and do not affect Social Security or Medicare benefits. Consult a tax advisor regarding Medicaid eligibility.
What if my home value drops below what I owe?
A reverse mortgage is a non-recourse loan. You or your heirs will never owe more than the home's appraised value at the time of repayment — even if the loan balance exceeds it. FHA insurance covers the difference.
How is a reverse mortgage different from a home equity loan?
A home equity loan requires monthly payments immediately. A reverse mortgage requires no monthly payments for as long as you live in the home. Both use your equity — but a reverse mortgage preserves your monthly cash flow.
Like What You See?
Nate can walk you through your specific numbers. Free, no credit pull.
Common Questions
How much equity can I access with a reverse mortgage?
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Do I still own my home with a reverse mortgage?
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