Reverse Mortgage Calculator

Reverse mortgage calculator with amortization schedule is used to calculate how much will the remaining equity balance be after a number of years. You will also get a reverse mortgage amortization schedule excel that shows you the interest and total amount each month.

Reverse Loan Calculator
Lump sum advance
Years
Monthly loan advance
Interest Rate

Reverse Mortgage Amortization Schedule

Month #	Interest	Total Amount
1	$856.25	$150,856.25
2	$861.14	$151,717.39
3	$866.05	$152,583.44
4	$871.00	$153,454.44
5	$875.97	$154,330.41
6	$880.97	$155,211.38
7	$886.00	$156,097.38
8	$891.06	$156,988.43
9	$896.14	$157,884.57
10	$901.26	$158,785.83
11	$906.40	$159,692.23
12	$911.58	$160,603.81
13	$916.78	$161,520.59
14	$922.01	$162,442.60
15	$927.28	$163,369.88
16	$932.57	$164,302.45
17	$937.89	$165,240.34
18	$943.25	$166,183.59
19	$948.63	$167,132.22
20	$954.05	$168,086.27
21	$959.49	$169,045.76
22	$964.97	$170,010.73
23	$970.48	$170,981.21
24	$976.02	$171,957.23
25	$981.59	$172,938.81
26	$987.19	$173,926.01
27	$992.83	$174,918.83
28	$998.50	$175,917.33
29	$1,004.19	$176,921.52
30	$1,009.93	$177,931.45
31	$1,015.69	$178,947.14
32	$1,021.49	$179,968.63
33	$1,027.32	$180,995.95
34	$1,033.19	$182,029.14
35	$1,039.08	$183,068.22
36	$1,045.01	$184,113.24
37	$1,050.98	$185,164.22
38	$1,056.98	$186,221.20
39	$1,063.01	$187,284.21
40	$1,069.08	$188,353.29
41	$1,075.18	$189,428.47
42	$1,081.32	$190,509.79
43	$1,087.49	$191,597.29
44	$1,093.70	$192,690.99
45	$1,099.94	$193,790.93
46	$1,106.22	$194,897.16
47	$1,112.54	$196,009.69
48	$1,118.89	$197,128.58
49	$1,125.28	$198,253.86
50	$1,131.70	$199,385.56
51	$1,138.16	$200,523.72
52	$1,144.66	$201,668.37
53	$1,151.19	$202,819.56
54	$1,157.76	$203,977.32
55	$1,164.37	$205,141.69
56	$1,171.02	$206,312.71
57	$1,177.70	$207,490.41
58	$1,184.42	$208,674.84
59	$1,191.19	$209,866.02
60	$1,197.99	$211,064.01
61	$1,204.82	$212,268.83
62	$1,211.70	$213,480.53
63	$1,218.62	$214,699.15
64	$1,225.57	$215,924.73
65	$1,232.57	$217,157.30
66	$1,239.61	$218,396.90
67	$1,246.68	$219,643.58
68	$1,253.80	$220,897.38
69	$1,260.96	$222,158.34
70	$1,268.15	$223,426.49
71	$1,275.39	$224,701.89
72	$1,282.67	$225,984.56
73	$1,290.00	$227,274.55
74	$1,297.36	$228,571.91
75	$1,304.76	$229,876.68
76	$1,312.21	$231,188.89
77	$1,319.70	$232,508.59
78	$1,327.24	$233,835.83
79	$1,334.81	$235,170.64
80	$1,342.43	$236,513.08
81	$1,350.10	$237,863.17
82	$1,357.80	$239,220.97
83	$1,365.55	$240,586.53
84	$1,373.35	$241,959.88
85	$1,381.19	$243,341.06
86	$1,389.07	$244,730.13
87	$1,397.00	$246,127.14
88	$1,404.98	$247,532.11
89	$1,413.00	$248,945.11
90	$1,421.06	$250,366.17
91	$1,429.17	$251,795.34
92	$1,437.33	$253,232.67
93	$1,445.54	$254,678.21
94	$1,453.79	$256,132.00
95	$1,462.09	$257,594.09
96	$1,470.43	$259,064.52
97	$1,478.83	$260,543.35
98	$1,487.27	$262,030.61
99	$1,495.76	$263,526.37
100	$1,504.30	$265,030.67
101	$1,512.88	$266,543.55
102	$1,521.52	$268,065.07
103	$1,530.20	$269,595.28
104	$1,538.94	$271,134.22
105	$1,547.72	$272,681.94
106	$1,556.56	$274,238.50
107	$1,565.44	$275,803.94
108	$1,574.38	$277,378.32
109	$1,583.37	$278,961.69
110	$1,592.41	$280,554.10
111	$1,601.50	$282,155.60
112	$1,610.64	$283,766.23
113	$1,619.83	$285,386.07
114	$1,629.08	$287,015.14
115	$1,638.38	$288,653.52
116	$1,647.73	$290,301.25
117	$1,657.14	$291,958.39
118	$1,666.60	$293,624.99
119	$1,676.11	$295,301.09
120	$1,685.68	$296,986.77
121	$1,695.30	$298,682.07
122	$1,704.98	$300,387.05
123	$1,714.71	$302,101.76
124	$1,724.50	$303,826.26
125	$1,734.34	$305,560.60
126	$1,744.24	$307,304.84
127	$1,754.20	$309,059.04
128	$1,764.21	$310,823.25
129	$1,774.28	$312,597.53
130	$1,784.41	$314,381.94
131	$1,794.60	$316,176.54
132	$1,804.84	$317,981.38
133	$1,815.14	$319,796.52
134	$1,825.51	$321,622.03
135	$1,835.93	$323,457.96
136	$1,846.41	$325,304.36
137	$1,856.95	$327,161.31
138	$1,867.55	$329,028.85
139	$1,878.21	$330,907.06
140	$1,888.93	$332,795.99
141	$1,899.71	$334,695.70
142	$1,910.55	$336,606.25
143	$1,921.46	$338,527.71
144	$1,932.43	$340,460.14
145	$1,943.46	$342,403.60
146	$1,954.55	$344,358.16
147	$1,965.71	$346,323.87
148	$1,976.93	$348,300.80
149	$1,988.22	$350,289.02
150	$1,999.57	$352,288.58
151	$2,010.98	$354,299.56
152	$2,022.46	$356,322.02
153	$2,034.00	$358,356.03
154	$2,045.62	$360,401.64
155	$2,057.29	$362,458.94
156	$2,069.04	$364,527.97
157	$2,080.85	$366,608.82
158	$2,092.73	$368,701.54
159	$2,104.67	$370,806.22
160	$2,116.69	$372,922.90
161	$2,128.77	$375,051.67
162	$2,140.92	$377,192.59
163	$2,153.14	$379,345.73
164	$2,165.43	$381,511.16
165	$2,177.79	$383,688.96
166	$2,190.22	$385,879.18
167	$2,202.73	$388,081.91
168	$2,215.30	$390,297.21
169	$2,227.95	$392,525.15
170	$2,240.66	$394,765.82
171	$2,253.45	$397,019.27
172	$2,266.32	$399,285.59
173	$2,279.26	$401,564.85
174	$2,292.27	$403,857.11
175	$2,305.35	$406,162.46
176	$2,318.51	$408,480.98
177	$2,331.75	$410,812.72
178	$2,345.06	$413,157.78
179	$2,358.44	$415,516.22
180	$2,371.91	$417,888.12

What is a reverse mortgage?

A reverse mortgage is a type of home mortgage that allows homeowners to borrow money against their home and does not need to make monthly payments. The reverse mortgage is designed for homeowners who are house-rich but cash-poor. In other words, the homeowner's net worth is mostly tight to their home and does not have much cash for spending after they retire. A reverse mortgage gives them the option to have cash in hand. A reverse mortgage is a special type of mortgage that is only available for homeowners who are 62 years or older. To apply for a reverse mortgage, the homeowner needs to own the house outright or have substantial equity in the house. How much a homeowner can borrow is determined by a few factors, the value of the house, the homeowner's age, the interest rate, and the homeowner's equity in the house.

How does a reverse mortgage work?

The main difference between a reverse mortgage and a traditional mortgage is that with a traditional mortgage, homeowners are required to make monthly payments until the mortgage is paid off. On the other hand, a reverse mortgage does not require monthly payments. The homeowner is required to pay off the loan once he permanently moves out, sells the house, or dies. Since there are no monthly payments, the mortgage balance goes up every month and the homeowner's equity in their house decreases over time. There are similarities between a reverse mortgage and a traditional mortgage. When a borrower takes out a reverse mortgage, he has the title to the home. The homeowner pays property tax and insurance, HOA fees, and maintains the house.

Traditional Mortgage Vs. Reverse Mortgage
	Traditional Mortgage	Reverse Mortgage
62+	No, in most states, borrowers only need to turn 18 to qualify for a traditional home mortgage.	Yes, homeowners need to be at least 62 years old to qualify for reverse mortgages.
Monthly Payments	Yes, homeowners are required to make monthly payments to reduce the principal amount and interest payments.	No, no monthly payments are required from the homeowner. Therefore, the principal amount increases instead of decreasing over time.
The homeowner has the title to the house	Yes	Yes
Must be a primary residence	No	Yes
Substantial home equity required	No, most lenders prefer a 10% down payment. However, it can be as low as 3% depending on the lender.	Yes, homeowners must own the house outright or have a very low mortgage balance to qualify for a reverse mortgage.
Credit score and income checks	Yes, lenders check credit scores to determine the interest rate the borrower will get. They check income and employment history to make sure borrowers are financially strong to repay the mortgage.	No, since the borrower is not required to make monthly payments to pay off the mortgage balance, no credit score and income checks are needed. However, homeowners must show residual income to prove they have the ability to pay property taxes and maintain and repair the house.
Debt-to-income ratio	Yes, most lenders will not grant mortgages to borrowers with a DTI over 45. Ideally, the borrower should have a DTI of 36 or lower.	No, there is no check for DTI, but lenders do check for residual income.

What is the interest rate on a reverse mortgage?

The interest rate for a reverse mortgage is higher than a traditional mortgage and home equity loans. The current reverse mortgage interest rate is between 6.7% - 7.3% as of January 2023 depending on the lender, the borrower's credit score, and other qualifications. The lending limit for a reverse mortgage is $1,089,300 in 2023. The limit has gone up every year in recent years.

Reverse Mortgage Requirements

• Homeowners must be at least 62 years older
• The property is paid off or with a low mortgage balance
• The property must be used as a primary residence.
• The homeowner must meet the residual income requirement to cover HOA fees, property tax, and home insurance.
• Homeowners must keep the house in good condition.
• Homeowners must complete the U.S. Department of Housing and Urban Development or HUD-approved counseling sessions for reverse mortgages.

Reverse Mortgage Costs

• Reverse mortgage counseling fee - the costs vary from agent to agent. It could be anywhere from $100 to $300.
• Loan original fee - like a traditional mortgage, borrowers may need to pay a loan origination fee to the lender.
• Closing costs - there are third-party fees for home appraisal, title search, inspecting, credit checks, and other fees.
• Mortgage insurance premium (MIP) - MIP guarantees the borrower receives the expected loan advance. There is initial and annual mortgage insurance that homeowners need to pay.

Reverse Mortgage Alternatives

There are many alternatives homeowners may consider before getting a reverse mortgage.

• Downsize - sell the current house and move to a smaller house. Not only can the borrower raise more money, but he can also save on property tax and home insurance. Usually, the property tax and home insurance will be lower for smaller houses.
• Rent part of the house - consider renting out part of the house. Bring someone in to cover some of the expenses and get money from renting.
• Sell assets - homeowners may consider selling assets to raise cash for living expenses. He can also sell old or unused stuff from the garage. Hold garage sales to get rid of old things that are no longer in use.
• Refinance the house - if the homeowner still has a mortgage balance on the house, he may be able to refinance the house to lower the monthly payments.
• Home equity loan - qualified homeowners may want to check out home equity loans which are much cheaper than a reverse mortgage in terms of interest rate.
• HELOC - homeowners may want to check out home equity line of credit. They usually come with lower interest rates than a reverse mortgage.

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