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Reverse Mortgage Calculator

This reverse mortgage calculator provides you with insights into how quickly your mortgage balance will grow over time. This calculator will not figure out a line of credit or lump sum payment based on your age and HUD rules. Using the assumptions gathered from other tools concerning the lump sum advance, interest rate, monthly payment and term of loan, this tool will calculate the mortgage balance over time.

Calculator Definitions

The variables used in our online calculator are defined in detail below, including how to interpret the results.

Lump-Sum Advance ($)

This is a one-time payment option, which is usually offered at the start of the reverse mortgage term.

Annual Interest Rate (%)

This is the rate of interest charged on the reverse mortgage. Typically, the interest rate would consist of a base rate (such as the Treasury Bill rate), plus a profit margin for the lender.

Term of the Loan (Years)

The term of the loan is the number of years over which the reverse mortgage will be paid. This is the number of years the borrower will receive a monthly payment from the lender.

Monthly Payment ($ / Month)

This is the monthly mortgage payment received from the reverse mortgage. In addition to receiving a lump-sum payment, the borrower can also receive monthly payments from the lender.

Mortgage Balance

The calculator results include a series of mortgage balances over time. The purpose of this calculator is to demonstrate how the balance on a reverse mortgage will grow. Calculations are performed for years 1, 2, 3, 5, 10, as well as the term of the loan.

Reverse Mortgage Calculator

Disclaimer: These online calculators are made available and meant to be used as a screening tool for the investor. The accuracy of these calculations is not guaranteed nor is its applicability to your individual circumstances. You should always obtain personal advice from qualified professionals.