Reverse Mortgage Calculator
Explore how a reverse mortgage could provide you with financial flexibility in retirement.
Reverse Mortgage Calculator
Understanding Reverse Mortgages
A reverse mortgage allows homeowners, typically seniors, to convert a portion of their home equity into cash. Unlike a traditional mortgage, you don't make regular repayments. Instead, the loan is repaid when the home is sold or the last borrower leaves the home.
This calculator can help you understand how much equity you might be able to access and the potential impact on your estate.
Considering a Reverse Mortgage?
Our financial experts can help you understand if a reverse mortgage is the right solution for your retirement planning.
Frequently Asked Questions
What is a reverse mortgage?
A reverse mortgage allows homeowners, typically those aged 60 or over, to access the equity in their home as a lump sum, regular payments, or a line of credit. The loan is repaid when the home is sold or the last borrower moves out or passes away.
Who is eligible for a reverse mortgage?
Eligibility criteria vary by lender, but generally, you need to be over a certain age (e.g., 60 or 65), own your home outright or have a significant amount of equity, and the property must be your primary residence.
What are the risks of a reverse mortgage?
Risks can include the loan balance growing over time due to compounding interest, which can reduce the equity left for your heirs. It's crucial to understand all terms and conditions before committing.
How does a reverse mortgage affect my pension or benefits?
Accessing equity through a reverse mortgage can impact your eligibility for certain government pensions or benefits. It's highly recommended to seek independent financial advice to understand the implications for your specific situation.