A reverse mortgage is a safe, federally insured loan that allows homeowners 62 or older to turn part of their home’s equity into cash without monthly mortgage payments, as long as you live in the home and meet the basic program requirements.  Many people worry they might “sign over” their home to the bank or government, but that’s not the case.  You keep title and ownership, just as with any other mortgage.

The most common reverse mortgage is the Home Equity Conversion Mortgage (HECM).  It’s insured by the Federal Housing Administration (FHA), giving you and your heirs important protections and clear rules.  With a reverse mortgage, the lender pays you and you choose how to receive the funds — as a lump sum, monthly payments, a line of credit, or a combination.  You also decide how much to borrow and when.

The balance, including any accrued interest, is repaid when the loan ends, usually after the last borrower leaves the home.  You can also make voluntary payments at any time without penalty if you’d like to reduce your balance or save on interest.  You still need to pay property taxes, homeowners’ insurance, and keep the home in good repair to avoid default or foreclosure.

Why Choose All Reverse Mortgage’s Calculator

When you’re looking for a reverse mortgage calculator, you deserve straightforward answers in real time and not vague estimates.  Most online calculators only give you a rough idea and leave out the most important details like interest rates, APR, and closing costs.

All Reverse Mortgage Calculator is different.  It’s the only calculator that delivers 100% accurate results, including today’s interest rates, closing costs, and amortization schedules. Here’s what sets it apart:
  • Real-Time Interest Rates & APR – Updated daily with both fixed and adjustable interest rates for comparison.
  • Location-Specific Closing Costs – Accurate taxes and fees for your ZIP code.
  • AI-Powered Loan Matching – Instantly shows the program that best fits your goals, including both HECM and proprietary/jumbo reverse mortgage options.  Proprietary reverse mortgages are private, non-FHA-insured loans offered by lending institutions, often suitable for borrowers with significant home equity or higher-value properties.
  • Side-by-Side Comparisons – Review HECM, jumbo, and proprietary loans together and compare payment options, including lump sum, monthly payments, and line of credit.
  • Customizable Reverse Mortgage Inputs – Enter lump sum advances, loan duration, monthly advances, and interest rates to tailor your results.
  • Amortization Calculator – See how your balance and equity might change year by year.
Unlike many online tools, our calculator is fast, free, and secure.  It only requests the key details needed to provide you with an accurate, personalized estimate.

How to Use the Calculator (Step-by-Step)

  • Enter Your ZIP Code – ARLO™ checks HUD lending limits and state-specific fees.
  • Confirm Your Home Value – Uses online property value data with the ability to manually adjust higher or lower if necessary.
  • Add Age, Mortgage Balance & Annual Interest Rate – Essential reverse mortgage inputs to calculate your potential loan amount and available proceeds.  Be sure to enter the annual interest rate for accurate results.  If you have a co-borrower, enter their age as well to ensure eligibility and precise calculations.
  • Enter All Relevant Reverse Mortgage Inputs – Include age, home value, mortgage balance, annual interest rate, and desired loan features to customize your scenario.
For eligibility details, see our HECM guide.

Compare Reverse Mortgage Options — Side by Side

Our calculator doesn’t just give you one number.  It shows you different scenarios so you can decide what works best for your retirement goals.  You can explore various payment options, such as lump sum, monthly payments, or a line of credit, and plan your draw strategy to fit your retirement needs.

Max Cash Out (Highest Payout)

This option allows you to receive more cash over time than any other reverse mortgage product available.  It’s designed to maximize the total amount of money you can access.  With this option, you receive a lump sum advance as your starting balance, which you can receive immediately when the loan closes.

Best for:  If your primary goal is to maximize the amount of money you can receive from your reverse mortgage, this is likely the best option for you.
Screenshot highlighting the largest reverse mortgage payout option  

Grow Equity Over Time (Lower Interest)

If your goal is to preserve as much equity in your home as possible, while still having a safety net for emergencies, this option may be the right fit.  With this plan, the loan balance grows slower than other reverse mortgage options, helping you preserve more of your home’s equity over time.

You can review the amortization schedule to see how this option works to preserve equity year after year.  It’s a wise choice for homeowners who want peace of mind knowing they’re borrowing conservatively. Best for: Homeowners who want access to funds but value retaining more equity. Screenshot displaying the lowest interest rate that preforms best over time.
 

Lowest Upfront Costs

If minimizing closing costs is your top priority, this option may be the best fit for you.  It’s designed for homeowners who are more interested in minimizing expenses than in getting the maximum loan amount.  Choosing this option can help reduce origination fees, which are part of the upfront costs included in the loan and accrue interest over time.

Best for: Homeowners with a shorter-term outlook who want to limit financed closing costs.Screenshot highlighting the lowest reverse mortgage closing costs  

Fixed-Rate Lump Sum Option

This is a fixed-rate reverse mortgage, which means your interest rate will remain unchanged once the loan is closed.  If locking in a stable, unchanging rate is your top priority, this could be the right option for you.  With a Fixed Rate loan, you’ll receive your funds as a one-time lump sum payment.

There is no credit line or monthly payments available with this option.  Keep in mind your specific circumstances because a Fixed-Rate loan will not offer the same flexibility as an adjustable-rate option.  It’s a good idea to compare the available proceeds from both programs before deciding what’s best for you.

Best for: Homeowners seeking stability and predictability.
Screenshot highlighting fixed-rate reverse mortgage options

Unsure which path best fits your needs?  Review our reverse mortgage pros and cons.

Frequently Asked Questions

Q.

How does a reverse mortgage calculator work?

A reverse mortgage calculator uses key data points from a prospective borrower’s scenario (Age, Home Value, Amount Owed, Current Rates, etc.) to determine how much money they can receive based on the HUD Principal Limit Factors.

Q.

Are all reverse mortgage calculators the same?

No, all reverse mortgage calculators are not the same.  They will all perform the standard calculations to determine a potential borrower’s eligibility based on the company’s offered rates, but that is where the similarities end.  Lenders do not always offer the same interest rates, and the better the interest rate offered to the borrower, the more money they will be eligible for.  Additionally, there will be variances in the level of detail provided by the calculator, and some calculators are easier to understand than others.

Q.

How much money do you get on a reverse mortgage?

The amount of money that you ultimately get on a reverse mortgage loan will be dependent on multiple factors.  The key factors are: 1.  The current value of your home.  The higher the value of your home, the larger your loan amount will be. 2.  The age of the youngest borrower or spouse.  The older you are, the higher the loan amount will be. 3.  Current interest rates.  The lower the rate on the reverse mortgage, the higher the loan amount will be. 4.  Amount owed on the home.  The less you owe on your home, the more proceeds you will have available.
Q.

How do interest rates affect the reverse mortgage calculation?

Interest rates play a vital role in many aspects of the reverse mortgage calculations.  There are two key interest rates to look at on the reverse mortgage.  The expected interest rate (Lender’s Margin + 10-year CMT Index) is the rate that affects the initial loan-to-value calculation, as well as the other calculations for monthly payment plans, and for any tax and insurance set aside.  The lower the expected rate, the higher the loan-to-value that you can borrow.  The Initial Interest Rate (Lender’s Margin + 1-year CMT index) is the rate that affects the interest accrual on the loan as well as the line of credit growth rate.
Q.

How is the line of credit growth rate calculated?

The line of credit growth rate is calculated by adding the Mortgage Insurance Renewal Rate to the Actual loan interest rate.  As of September 2025, the Mortgage Insurance Renewal Rate is 0.50%.  For example, if your current loan rate is 5.50%, your line of credit growth rate would currently be 6.00%.  The actual interest rate on the loan can vary either month to month or year to year.  The Mortgage Insurance Renewal Rate is set in stone once the reverse mortgage loan is closed.
Q.

How is the monthly tenure payment calculated?

The maximum monthly tenure payment a borrower could be eligible for is calculated by using a financial calculator.  It must factor in the Expected Interest Rate, the net Principal Limit (available proceeds to the borrower), and the length of time until the youngest borrower reaches the age of 100.  Sample Scenario: A 70-year-old borrower with a $500,000 home value in California, expecting a 6.125% rate, and no existing mortgages or liens (free and clear).  This hypothetical scenario would result in a Net Principal Limit of $185,497.57 and a maximum tenure payment of $1,181.24.  Whenever a borrower opts for a tenure payment, the payments do not stop for as long as the borrower is living in the property and the loan is in good standing.

Q.

How is a monthly term payment calculated?

A term payment under a reverse mortgage is a monthly payout chosen for a fixed period of time, unlike a tenure payment, which continues for life as long as you live in the home as your primary residence and maintain property taxes and insurance.  Borrowers often choose the term option when they want extra income for a set number of years.  For example, to bridge the gap until Social Security or a pension begins.  The monthly term payment amount is calculated using a financial calculator and depends on the expected interest rate, the net Principal Limit (available loan proceeds), and the length of the term selected.  The shorter the timeframe, the larger the monthly payment; conversely, a longer term reduces the monthly payment.  Importantly, a term payment cannot extend beyond the borrower’s 100th birthday.  If it does, the system defaults to a lifetime tenure payment.  In short, a term payment is best for borrowers who want larger payments for a limited period, while a tenure payment is designed for those who prefer a steady income for life.
Q.

What is the 60% rule for a reverse mortgage?

The 60% rule, often cited in connection with reverse mortgages, pertains to the initial disbursement limit.  The overwhelming majority of reverse mortgage loans are originated under the HECM (Home Equity Conversion Mortgage) program that is insured by HUD (Department of Housing and Urban Development).  The HUD rules limit borrowers to advancing 60% of the total Principal Limit (Loan Amount) either at the time of closing or during the first year the loan is in place.  The exception to this rule is if the “Mandatory Obligations” are at 50.01% or higher of the Principal Limit.  Mandatory obligations include all closing costs and any existing lien(s) against the property that must be paid at the time of closing.  When the mandatory obligations exceed that threshold, a borrower is permitted to advance an additional 10% of the Principal Limit (if available) above the mandatory obligations.  For example, if the Principal Limit is $200,000 and the total mandatory obligations are $150,000, the borrower would be able to advance an additional $20,000 either at the time of closing or during the first year the loan is in place.
Q.

How much can a 70-year-old borrow on a reverse mortgage?

The amount a 70-year-old can borrow will depend on their home value and the current interest rates.  HUD publishes a Principal Limit Factors table that outlines the recommended loan-to-value ratios for each age at every expected interest rate.  Every 1/8th (0.125%) change in the expected interest rate will alter the loan-to-value ratio.  The best-case scenario for a 70-year-old borrower would be a 57.6% loan-to-value ratio, which would require an expected interest rate of 3% or lower.  3% is the absolute floor for the calculations.  On the flip side, the table goes all the way up to 18% and at an 18% expected rate, a 70-year-old borrower could get a 11.3% loan-to-value.  As of September 2025, expected interest rates tend to range from 5.75% – 6.25%.  At a 6.00% expected rate, a 70-year-old could borrow 41.5% loan-to-value.

Consulting a HUD-Approved Counselor

Before you can move forward with a reverse mortgage, HUD requires every borrower to complete a counseling session with an independent, HUD-approved counselor.  This step is designed to protect you and ensure you understand the program before incurring any costs. You’re welcome to talk with our licensed loan officers first.  We can help you compare loan options and see what might fit your needs.  But the counseling session comes before your application can proceed.  When you finish, you’ll receive a counseling certificate that shows you understand the loan and its requirements. These counselors are trained and certified by the Department of Housing and Urban Development.  Their job is to give you clear, unbiased information — not to sell you on the program or push you away from it.  They’ll review the basics you’ve discussed with us, explain the costs and responsibilities, and answer any remaining questions about how payouts and repayment work. We’ll provide you with HUD’s list of approved counseling agencies when you’re ready to schedule.  You can also find the full list on HUD’s website if you’d like to look on your own.

Preparing Documentation

Gathering a few key documents early can make your reverse mortgage application process smoother.  You’ll need to provide proof of age (such as a driver’s license or passport), proof of residence, and income information so we can confirm you meet HUD’s residual income requirements — the standard used to be sure you’ll have enough income left each month to maintain the home and cover living expenses. We’ll also review your credit history from the past 24 months to see how you’ve handled property charges like taxes, insurance, and HOA dues.  A history of on-time payments is important, but even if there have been challenges, we can often work with you to document and explain what happened. Be ready to share recent property tax statements, your current mortgage balance (if any), and details about homeowners’ insurance and HOA fees.  Having these documents upfront helps us provide accurate loan options and prevents delays once you decide to move forward.

Discussing Plans with Family

If you’re considering a reverse mortgage, it’s wise to talk openly with your family or heirs early in the process.  A reverse mortgage uses home equity over time, so it’s important that they understand how the loan balance will be repaid at maturity — usually when you move out permanently, sell the home, or pass away. These conversations can also surface practical estate-planning details.  For example, if there’s a family trust, we’ll want to know before closing so we can make sure the property is properly vested.  Addressing this upfront helps avoid delays and keeps your long-term plans intact. Sharing your decision with loved ones can set clear expectations, prevent misunderstandings about inheritance, and give everyone peace of mind. It also helps ensure your reverse mortgage supports your retirement goals without causing confusion later.

Compare Our Suite of Reverse Mortgage Calculators

Explore our full suite of tools designed to help you estimate payments, credit line growth, refinance opportunities, home purchase, and long-term loan projections.
Calculator TypeWhat It DoesKey FeaturesIncludes Rates/APR
All Reverse CalculatorFigures out payments, lump sums, and credit linesAI-powered: Recommends the best loan for your goalsYes
Line of Credit CalculatorShows HECM credit line and growth over timeProjects how your credit line growsNo
Refinance CalculatorChecks if refinancing your HECM pays offUses home value, rates, and 5x benefit ruleNo
Purchase CalculatorPlans buying a home with a reverse mortgageEstimates down payment and sale proceedsYes
Amortization CalculatorTracks loan balance and equity over yearsDownloadable Excel file for your recordsYes

  What Homeowners Are Saying: “All Reverse Mortgage offered the clearest calculator with detailed results immediately. Their rates were lower, and their team quickly answered all our questions. Highly recommended!” – Peter H., (Verified BBB Review) Find Out How Much You Could Qualify For Today.  Use our real-time reverse mortgage calculator now or call (800) 565-1722.  All Reverse Mortgage, Inc. is America’s #1 rated reverse mortgage lender with 20+ years of experience and a 4.99/5 customer satisfaction rating.