Reverse Mortgage Calculator
Estimate your reverse mortgage proceeds
This calculator is being provided for educational purposes only. The results are estimates based on information you provided and may not reflect CrossCountry Mortgage, LLC product terms. The information cannot be used by CrossCountry Mortgage, LLC to determine a customer’s eligibility for a specific product or service.
What is a reverse mortgage?
Reverse mortgages are designed to allow older homeowners to access the equity in their primary residences. Monthly loan payments are optional because the loan is repaid when the borrower sells the home, moves out permanently or passes away. Any remaining equity after the loan is settled goes to the borrower or their heirs.
To be eligible for a reverse mortgage you must meet certain requirements:
- Be 62 years or older for federally-insured Home Equity Conversion Mortgages (HECMs) or 55 years or older for proprietary loans (varies by state and product)
- Live in the home as your primary residence
- Have a substantial amount of equity in the home
- Have sufficient financial resources to stay current on property taxes, homeowners insurance and maintenance
- Complete a counseling session with a HUD-approved agency for a HECM
Refinance reverse mortgage
The most common reverse mortgage is a refinance. It allows you to convert part of the equity in your primary residence into tax-free* cash — without selling your home or making monthly mortgage payments. You still own and live in your home but must cover taxes, insurance and maintenance. Instead of paying the lender each month, the lender pays you through one of several disbursement options, such as a lump sum, line of credit or monthly payment.
Reverse mortgage for purchase
A second loan type is the reverse mortgage for purchase. It allows you to buy a new primary residence by combining a one-time down payment with – reverse mortgage loan proceeds in one transaction. It’s ideal for relocating or downsizing. Monthly mortgage payments are not required as long as you remain in the home, but you must stay current with taxes, insurance and maintenance.
How the reverse mortgage calculator works
Begin by choosing the type of reverse mortgage you want using the drop-down menu: Purchase or refinance. Then follow the instructions below, based on the type of loan you select.
Calculate reverse for purchase
Start by entering the total purchase price of your new primary residence.
Next, choose the property’s state from the drop-down menu.
Finally, enter the age of the youngest borrower.
The margin will be calculated automatically.
Click the calculate button.
The display will show you the loan proceeds and the estimated cash investment† you’ll need for your purchase.
Calculate reverse for refinance
Start by entering the value of your primary residence.
Next, enter your current mortgage balance.
Choose the property’s state from the drop-down menu.
Finally, enter the age of the youngest borrower.
The margin will be calculated automatically.
Click the calculate button.
The display will show your estimated available home equity, your maximum first year line of credit and your total line of credit.
Additional mortgage calculators
Buying or refinancing a home can be confusing – we want to make beginning the journey as simple as possible. We’ve developed easy-to-use tools that will help you compare your options, calculate your payment, see how much mortgage you can afford, understand your debt-to-income ratio, and discover answers to many of your homebuying questions.
Use our free, interactive calculators to start getting answers and take the next financial steps toward your goals:
*CrossCountry Mortgage, LLC does not provide tax advice. Consult a tax advisor for further information.
†This down payment range assumes closing costs will be financed into the loan. The information being displayed is for illustrative purposes only. Actual cash required may vary and is based on age of youngest borrower, interest rate, home value, and other factors. Please contact CrossCountry Mortgage, LLC for details about credit costs and terms.