Note: The free reverse mortgage calculator on this web page is specific to HECM reverse mortgages.
See What You May Qualify For
THE FIGURE AND GRAPHS IN THE REVERSE MORTGAGE CALCULATOR ABOVE ARE INTENDED AS AN ESTIMATE ONLY, BASED ON THE HOME VALUE, MORTGAGE BALANCE, AND BORROWER AGE YOU HAVE PROVIDED. YOUR ACTUAL LOAN AMOUNT MAY DIFFER BASED ON MARKET CONDITIONS AND APPLICABLE FEES IN YOUR AREA
For this example, EXPECTED RATE has been set at for an adjustable-rate HECM. Rates are subject to changing market conditions. The “Total Proceeds” amount you may be eligible for is the sum of your “Mortgage Payoff,” “Available Cash,” and “Closing Costs” such as initial MORTGAGE INSURANCE PREMIUM (MIP).
This is not a commitment to lend nor a loan approval. All borrowers must meet loan obligations, including paying all property charges (property taxes, fees, and homeowners insurance) as well as living in the property as the primary residence. The borrower must also properly maintain the home. If the borrower does not meet these loan obligations the loan may become due and payable.
See What You May Qualify ForReverse Mortgage Calculator FAQs
How does a reverse mortgage work?
A reverse mortgage is a loan available to homeowners age 62 and older that allows them to convert a portion of their home equity into accessible funds. Repayment is typically deferred until the borrower sells the home, moves out permanently, or passes away.
What are the reverse mortgage requirements?
To be eligible, borrowers generally must:
- Be at least 62 years old
- Have sufficient equity in the home
- Live in the home as a primary residence
- Complete a counseling session with a HUD-approved counselor
- Demonstrate the ability to stay current on property taxes, insurance, and home maintenance
- Meet applicable property and loan guidelines
- Not have delinquent federal debt
What types of reverse mortgages are available?
Fairway offers several reverse mortgage solutions, including:
- Home Equity Conversion Mortgage (HECM)
- HECM for Purchase (H4P)
- Jumbo Reverse Mortgage (for higher-value homes)
- HomeSafe Second
How much equity do I need to qualify for a reverse mortgage loan?
In most cases, borrowers need to have a meaningful amount of equity in their home. This often means owning the home outright or having at least 50% equity, though exact requirements can vary.
What are the options for receiving HECM reverse mortgage funds?
- A lump sum at closing
- A line of credit that can be accessed over time (unused funds may grow, depending on the program)
- Monthly payments for a set period or for as long as the borrower remains in the home
- Or a combination of these options
How much money can I receive from a reverse mortgage?
With a HECM, the amount available depends on several factors, including the borrower’s age, current interest rates, and the home’s value (subject to applicable lending limits). Currently, the limit is $1,249,125.
When does a reverse mortgage make sense?
A reverse mortgage may be considered as part of a broader financial strategy,* in situations such as:
- Financial Planning: Using home equity as one component of a long-term retirement plan
- Managing Market Risk: Accessing home equity instead of liquidating investments during market downturns
- Accessing Home Equity: Utilizing accumulated home value without selling the property
- Covering Expenses: Supporting costs such as home improvements, healthcare, or daily living expenses
- Lifestyle Flexibility: Creating additional financial flexibility in retirement
*This text does not constitute financial advice. Please consult a financial professional for your specific situation.
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