Reverse Mortgage Calculator

Estimate the potential proceeds from a reverse mortgage based on your home value, age, and interest rates.

Your Details

₹ 50,00,000
62 Years
6.0 %
₹ 0

Estimated Net Proceeds

₹ 0

Total Available Loan Amount

₹ 0

Loan Fees & Other Costs

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Key Factors Influencing Your Reverse Mortgage

Factor Impact on Proceeds
Home Value Higher home value generally leads to higher available loan amounts.
Youngest Borrower's Age Older borrowers typically qualify for more proceeds.
Interest Rate Lower interest rates can result in higher initial loan amounts.
Outstanding Mortgage/Loan Any existing loan must be paid off first, reducing net proceeds.
Closing Costs & Fees These reduce the total amount you receive.

Exploring Reverse Mortgages: Accessing Your Home Equity

Our Reverse Mortgage Calculator helps you understand how much equity you might be able to access from your home.

What is a Reverse Mortgage?

A reverse mortgage is a special type of loan for homeowners, typically aged 62 or older, that allows them to convert a portion of their home equity into cash. Unlike a traditional mortgage where you make monthly payments to the lender, with a reverse mortgage, the lender pays you.

The loan becomes due when the last borrower moves out, sells the home, or passes away. You retain ownership of your home and are responsible for property taxes, homeowner's insurance, and home maintenance.

How a Reverse Mortgage Works

The amount of money you can receive from a reverse mortgage primarily depends on three factors:

  1. Your Age (and co-borrower's age)
    Generally, the older you are, the more money you can receive.
  2. Your Home's Value
    The more your home is worth, the more equity you can potentially access.
  3. Current Interest Rates
    Lower interest rates typically mean a higher principal limit (the maximum amount you can borrow).

The funds can be received in various ways: a lump sum, monthly payments, a line of credit, or a combination. The loan balance grows over time as interest and fees are added to it.

Benefits and Considerations

Reverse mortgages can offer significant benefits, but it's crucial to understand the considerations:

Benefits:

  • Access home equity without selling your home.
  • No monthly mortgage payments required.
  • Funds can be used for any purpose (e.g., living expenses, home repairs, healthcare).
  • You retain ownership of your home.

Considerations:

  • Loan balance grows over time, reducing home equity.
  • Fees and closing costs can be substantial.
  • You remain responsible for property taxes, insurance, and maintenance.
  • Can impact eligibility for certain government benefits.
  • Heirs will need to repay the loan (or sell the home) to inherit the property.

Frequently Asked Questions

Yes, you retain full ownership of your home. The lender places a lien on the property, similar to a traditional mortgage, but the title remains in your name.

The loan becomes due and payable when the last borrower (or non-borrowing spouse, if applicable) permanently leaves the home (e.g., sells, moves out, or passes away). Typically, the heirs can choose to repay the loan and keep the home, or sell the home to satisfy the debt.

While you don't make monthly mortgage payments to the lender, you are still responsible for paying property taxes, homeowner's insurance, and maintaining the home in good condition. Failure to do so can result in the loan becoming due and payable.