Not a payout calculator — a real reverse mortgage amount depends on your age, current rates, and HUD's own tables, which is exactly why counseling is required before anyone applies. This shows what actually changes structurally between your three real options.
This isn't a quote or an estimate of what you'd receive. Every HECM borrower is required to complete independent, HUD-approved counseling before applying — that session, not a website, is where your real numbers come from. This tool exists to help you understand the tradeoffs before that conversation, not replace it.
Stay As-Is
Ownership: You, fully
Monthly payment: None if paid off, or your existing payment
Cash available now: None, unless you separately borrow
Home equity over time: Builds normally, or stays flat with no mortgage
Ongoing responsibilities: Taxes, insurance, upkeep — same as always
Impact on heirs: Full home value passes to them
What triggers a change: Nothing — status quo continues
Best fit if: Modifications and care needs are modest and manageable
Reverse Mortgage
Ownership: You — you keep the title
Monthly payment: None required
Cash available now: Yes — lump sum, monthly, or line of credit
Home equity over time: Shrinks — loan balance grows via interest and insurance premiums
Ongoing responsibilities: Taxes, insurance, upkeep still required, or the loan can default
Impact on heirs: They inherit remaining equity after the loan is repaid, if any — HECMs are non-recourse, so they'll never owe more than the home is worth
What triggers a change: Loan becomes due when you sell, move out permanently, or pass away
Best fit if: You want to stay home and need real cash, without moving or taking on monthly payments
Sell & Move
Ownership: The buyer, after closing
Monthly payment: N/A — no longer your home
Cash available now: Yes — net proceeds at closing
Home equity over time: Converted to cash at sale, one time
Ongoing responsibilities: None — buyer's responsibility now
Impact on heirs: Cash proceeds may pass to them instead of the home itself
What triggers a change: Immediate — you relocate now
Best fit if: Ongoing costs of staying outweigh the value of remaining in the home
Where to go next
If a reverse mortgage looks like it might genuinely fit, the real next step is the same one HUD requires before anyone can apply: independent counseling with a HUD-approved counselor, not a lender's sales team. That conversation is where you get your actual numbers — this page exists to help you walk into it already understanding the tradeoffs.
Why doesn't this tool show me an actual dollar amount?
Because a real, accurate figure depends on your age, current interest rates, and HUD's own actuarial tables — exactly the numbers a HUD-approved counselor will walk through with you. A website estimate risks being meaningfully wrong on a decision this consequential.
Is a reverse mortgage ever a bad idea?
Yes, for some families — particularly if you're likely to move again soon, if a traditional home equity loan or HELOC would cost less and you can handle the monthly payment, or if preserving the full home value for heirs matters more than accessing cash now. This is exactly what counseling is designed to help you weigh honestly.
Does selling always mean the family gets more?
Not necessarily — selling converts equity to cash immediately but ends your connection to the home. A reverse mortgage lets you access some equity while staying, at the cost of what's left for heirs later. Which is "more" depends entirely on what you're actually optimizing for.
Sources
U.S. Department of Housing and Urban Development — reverse mortgage (HECM) program information, hud.gov
Genworth Cost of Care Survey — care cost benchmarks used in comparison figures, referenced via Find Local Help
This page provides general educational information and is not financial, legal, or tax advice, and is not an offer of credit. Reverse mortgage terms, eligibility, and amounts vary by lender and individual circumstances — confirm your specific numbers through required HUD-approved counseling and a licensed lender.