If you are 62 years of age or older, a reverse mortgage allows you to convert part of your home's equity into loan proceeds.
However, there is a limit on the loan amount, which is mentioned below.
And the loan is paid off when the home is sold, or when you move to a new residence, or in the unfortunate event of a death.
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The amount you can borrow depends on your age, the value of the home and the current mortgage balance.
However,
to calculate your reverse mortgage, enter the details in the input field and click the button.
Estimated Loan Amount:
What is Reverse Mortgage?
A reverse mortgage is a type of loan in which seniors can access the equity in their homes without having to
sell their property.
The funds from the loan can be used for any purpose, and the loan does not need to be repaid until
the borrower moves out or dies.
How Reverse Mortgages are Calculated?
The loan amount is based on the main three factors: These are the age of the borrower, the value of the home, and the
outstanding mortgage balance.
If you are older, you can borrow more money. The Loan-to-Value (LTV) ratio helps calculate the
percentage
of the home’s value that can be accessed.
FAQs
What is a Reverse Mortgage?
A reverse mortgage is a loan for homeowners aged 62 and above that allows them to convert part of their home
equity into loan proceeds,
without selling their home.
Who is eligible for a Reverse Mortgage?
To be eligible, you must be 62 years of age or older (age may vary by country), have sufficient equity in
your home,
and live in the home as your primary residence.
How is the loan amount calculated?
The loan amount depends on the age of the youngest borrower, the value of the home, and the current mortgage
balance. The LTV ratio also affects how much you can borrow.
How do I repay the loan?
The loan is repaid when the you sells the home, moves out, or passes away. There are no monthly payments
required during
the term of the loan.
Is a Reverse Mortgage taxable?
The funds received from a reverse mortgage are not taxable as income. However, they may affect other
benefits or financial
aid you are receiving.
