Convert your home equity into tax-free cash without monthly mortgage payments. Stay in your home, maintain ownership, and access funds for retirement, healthcare, or any purpose. Available to homeowners age 62 and older.
A Reverse Mortgage (also known as a Home Equity Conversion Mortgage or HECM) allows homeowners age 62 and older to convert part of their home equity into cash without having to sell their home or make monthly mortgage payments. Instead of paying the lender, the lender pays you.
The loan is repaid when you sell the home, move out permanently, or pass away. You retain ownership and can live in your home for as long as you wish, as long as you maintain the property and pay property taxes and insurance. The funds are tax-free and can be used for any purpose.
Receive money from your home equity without monthly mortgage payments required.
Flexible funding for your retirement years
Receive regular monthly payments to supplement Social Security and pensions
Pay off your current mortgage and eliminate monthly payments
Access funds as needed with a growing line of credit
Financial flexibility for your retirement
Compare different reverse mortgage products to find the best option for your financial situation. Professional commercial lending tools at your fingertips.
| Product | HECM FIXED | HECM ARM | CHOICE FIXED |
|---|---|---|---|
| Property Value | $0 | $0 | $0 |
| Max Claim Amount | $0 | $0 | $0 |
| Principal Limit | $0 | $0 | $0 |
| Available Funds | $0 | $0 | $0 |
Results received from this calculator are designed for comparative purposes only. Accuracy is not guaranteed. Professional evaluation is required for final loan qualification. This page is for demonstration purposes only. All rates, terms, and figures are examples and subject to change.
Choose the payment plan that best fits your needs
| Payment Type | Description | Best For | Flexibility |
|---|---|---|---|
| Lump Sum | Receive all funds at closing | Paying off mortgage, large expenses | Fixed rate only |
| Monthly Payments (Tenure) | Equal monthly payments for life | Supplementing retirement income | As long as you live in home |
| Monthly Payments (Term) | Fixed monthly payments for set period | Bridging gap to Social Security | You choose the term length |
| Line of Credit | Draw funds as needed, credit line grows | Emergency fund, future needs | Highest flexibility |
| Combination | Mix of monthly payments and credit line | Income + emergency reserve | Customizable |
Key differences between reverse and forward mortgages
| Feature | Reverse Mortgage | Traditional Mortgage |
|---|---|---|
| Monthly Payment | None required | Required monthly payment |
| Cash Flow | Lender pays you | You pay lender |
| Age Requirement | 62+ years old | No age requirement |
| Income Requirement | Limited financial assessment | Strict income verification |
| Home Equity | Decreases over time | Increases over time |
| Ownership | You keep title and ownership | You keep title and ownership |
| Repayment | When you move, sell, or pass away | Monthly over loan term |
| Tax Status | Loan proceeds are tax-free | N/A (you're paying) |
Typical fees associated with reverse mortgages
Charged by lender for processing the loan. Capped at $6,000 by FHA. Typically $2,500 for homes valued up to $200,000, or 2% of first $200,000 plus 1% of amount over $200,000.
FHA insurance protects you and the lender. Initial MIP is 2% of home value at closing. Annual MIP is 0.5% of outstanding balance, but you never pay out of pocket.
Required FHA appraisal typically costs $450-$800 depending on location and home size. May require pest inspection or repairs to meet FHA standards.
Standard costs including title insurance, recording fees, credit report, and other third-party fees. Usually $2,000-$4,000 total. Can be financed into the loan.
Monthly fee for loan servicing, typically $30-35 per month, but set aside at closing so you never pay out of pocket during the life of the loan.
Yes! You retain full ownership of your home. Your name stays on the title. You can sell your home at any time. The reverse mortgage is just a loan against your home equity, similar to a traditional mortgage or home equity loan, except you don't make monthly payments.
No. With an FHA-insured HECM reverse mortgage, you can never owe more than your home's value, and you can never be forced to leave your home as long as you continue to pay property taxes, insurance, and maintain the property. You can live in your home for life.
Your heirs have several options: (1) Pay off the loan balance and keep the home, (2) Sell the home, pay off the loan, and keep any remaining equity, or (3) Turn the home over to the lender. Your heirs are never personally liable for the loan amount beyond the home's value.
No. Reverse mortgage proceeds are considered loan advances, not income, so they are not taxable. They also don't affect Social Security or Medicare benefits. However, you should consult with a tax advisor about your specific situation.
Yes. You can pay off your reverse mortgage at any time without penalty. You can make payments toward the principal if you choose (though it's not required). Many borrowers use reverse mortgages strategically and pay them off when they sell or refinance.
The reverse mortgage becomes due when you permanently move out of the home (typically defined as not living there for 12 consecutive months). You would sell the home, pay off the reverse mortgage, and keep any remaining equity. Some borrowers then get a new reverse mortgage on their new primary residence if they wish.
With a reverse mortgage line of credit, the available credit grows over time at the same rate as the loan's interest accrues (plus the mortgage insurance premium rate). For example, if you have $100,000 available and don't use it, it could grow to $120,000+ in a few years. This growth is one of the unique benefits of reverse mortgages.
You are protected by the FHA insurance. With a HECM reverse mortgage, you can never owe more than your home's value at the time the loan is repaid. If the home sells for less than the loan balance, the FHA insurance covers the difference. Your other assets and your heirs' assets are protected.
Speak with a reverse mortgage specialist
HECM reverse mortgages include important consumer protections
You or your heirs will never owe more than the home's value at the time the loan is repaid, even if the loan balance exceeds that amount.
As long as you pay property taxes, insurance, and maintain the home, you can live there for life. You cannot be forced out due to loan balance.
HECM loans are insured by the Federal Housing Administration, protecting both borrowers and lenders from default risk.
Eligible non-borrowing spouses can remain in the home even after the borrowing spouse passes away, under certain conditions.