Reverse mortgage calculator

Usually up to 55% of the home’s appraised value (Equitable advertises up to 59% at its top tier) — but that’s the ceiling, not your number. The actual limit is set by your age, the property type, and its location: older borrowers qualify for more because the lender expects to wait less time for repayment. Both borrowers must be 55+. This calculator models whatever amount you enter; your real maximum comes from a lender quote.

As of our June 11, 2026 verification at the lenders’ own rate sheets: 5-year fixed rates run 6.44%–6.64% (Home Trust EquityAccess and Equitable Flex Lite at 6.44%, CHIP at 6.64%), plus setup fees of $995–$1,795 and appraisal/legal costs. That’s roughly a point above a HELOC — the real cost isn’t the rate premium, it’s the structure: with no payments, the interest compounds onto the balance, which is exactly what this calculator shows. Full comparison in the reverse-mortgage guide.

No — every federally regulated reverse-mortgage lender carries a no-negative-equity guarantee: as long as you meet the obligations (maintain the property, keep taxes and insurance current), the repayment owed at the due date won’t exceed the home’s fair market value, and the lender absorbs any shortfall. The fine print both CHIP and Equitable state: fees and interest accrued after the due date are excluded. This calculator shows the crossover year where the guarantee would start doing work — reaching it means your estate inherits the house’s paperwork, not its value.

When you sell the home, move out permanently (including into long-term care), or the last borrower dies. The balance — original advances plus all compounded interest — is repaid from the sale, and anything left belongs to you or your estate. There are no payments along the way, though both major lenders allow optional interest payments (which freeze the compounding) and prepayments with charges that taper over time.

Three, in rough order of cost: a HELOC is about a point cheaper and interest-only — but you must income-qualify at the stress-tested rate, which is precisely the wall retirement income hits (see HELOCs in retirement — the honest move is applying before you retire). Downsizing converts equity to cash with no compounding at all, at the cost of moving. And a secured line or sale-leaseback within family sometimes beats both. The reverse mortgage wins specifically when staying put matters and qualifying income is gone — price all three before signing.