The reverse mortgage calculator estimates how much equity you can access based on your age, home value, current interest rates, and chosen disbursement method. It shows the available proceeds as a lump sum, monthly payment, line of credit, or combination. The calculator also projects how the loan balance grows over time since no payments are made during the loan term.

Older borrowers receive a higher percentage of their home's value because the expected loan duration is shorter. A 62-year-old might access 40-50% of their home's value, while an 80-year-old could access 60-70%. The calculator adjusts the available proceeds based on age because lenders need the home's future value to cover the growing loan balance plus interest and insurance over the expected loan term.

Since no monthly payments are made on a reverse mortgage, the loan balance grows each month by the amount of accrued interest and mortgage insurance premiums. The calculator projects this growth over time, showing how the balance increases. For example, a $200,000 initial balance at 6% interest grows to approximately $360,000 after 10 years without any payments.

The reverse mortgage line of credit has a unique feature where the unused portion grows over time at the same rate as the loan interest rate. The calculator can model this growth, showing how an initial $100,000 credit line could grow to $150,000 or more over several years. This feature makes the line of credit option increasingly valuable the longer it remains unused.

Yes, the calculator models three main disbursement options: a lump sum taken at closing, fixed monthly payments for a set term or for life, and a line of credit drawn as needed. You can also model combinations of these options. Each approach affects your available proceeds and how the loan balance grows differently over time.