Reverse Mortgage Calculators AARP Your Age: Your Estimated Home Value: Your Estimated Reverse Mortgage Loan Amount: function calculateResults() { var age = document.getElementById("age").value; var homeValue = document.getElementById("homeValue").value; var loanAmount = homeValue * .6 * (1 + (.0032 * age)); document.getElementById("loanAmount").value = loanAmount; } What is a Reverse Mortgage and How Does it Work? A reverse mortgage is a home equity loan for people who are 62 and older. It’s a great way to access the equity in your home! With a reverse mortgage, you borrow money based on your home’s equity and use it as a lump sum, monthly payment, or line of credit. This type of loan doesn’t require you to have a job or monthly payments. Instead, you get the funds from your lender and usually don't have to pay anything back until you either die, sell the home, or move out of the home. The benefits of a reverse mortgage are that you don’t have to make any payments or worry about credit checks. All you have to do is be a homeowner, and you can get access to the equity in your home. It’s a great option for retirees who have a lot of equity in their homes but may not have enough cash flow from other sources to pay their bills. AARP Reverse Mortgage Calculator AARP provides a great tool to help you find out if a reverse mortgage makes sense for you. The AARP reverse mortgage calculator is easy to use and free. All you have to do is input your age, the appraised value of your home, and zip code. Once you hit the “calculate” button, you’ll get an estimate of what you could access through a reverse mortgage. The AARP reverse mortgage calculator will also give you the potential fees, so you know exactly what to expect when you apply for the loan.This tool is helpful for anyone considering a reverse mortgage and is especially important for people without access to a financial planner. How Can I Use the Funds from a Reverse Mortgage? Once you take out a reverse mortgage, the funds go directly to you. You can use them for anything you want, from funding your retirement to making home improvements or paying medical bills. Some people use a reverse mortgage to buy a second home or supplement their income. It’s up to you—the funds are yours to use however you want. It’s important to remember that the money you borrow with a reverse mortgage will need to be paid back eventually. Usually, the funds are due when you move out of the home, when you die, or when you sell your home. If you use the funds for something other than the home, make sure you understand the repayment requirements before you take out the loan. What Are the Advantages and Disadvantages of a Reverse Mortgage? Reverse mortgages are great because they allow you to access the equity in your home without having to make monthly payments. This can help ensure that you have enough money to live comfortably in retirement. You can also use the funds for anything you want. The disadvantages of a reverse mortgage include the fact that you will be taking out a loan that needs to be paid back eventually. This means that if your home increases in value, you will not be able to access that additional equity. Also, if you move out of the home, you will need to pay back the loan. Additionally, the fees associated with a reverse mortgage can be high, so it’s important to shop around and compare options. Conclusion A reverse mortgage can be a great way for retirees to access the equity in their home without having to worry about making monthly payments. The AARP reverse mortgage calculator is a great tool to help you figure out how much you could access. Make sure you understand the advantages and disadvantages of a reverse mortgage before you take out the loan. With the right information, a reverse mortgage can help you enjoy a comfortable retirement.