Reverse Mortgage Calculator
Estimate your reverse mortgage benefits for retirement
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Reverse Mortgage Estimate
What is Reverse Mortgage?
A reverse mortgage is a financial product that allows homeowners aged 62 or older to borrow money against the value of their home. Unlike a traditional mortgage, no monthly payments are required, and the loan is repaid when the borrower moves, sells the home, or passes away.
Key Components
Reverse mortgage calculations consider your home's current market value, age of the youngest borrower, current interest rates, and any existing mortgage balance. These factors determine the maximum amount you can borrow and the various payment options available.
Why Consider Reverse Mortgage?
- Access home equity without selling
- No monthly mortgage payments required
- Maintain ownership of your home
- Supplement retirement income
Using the Reverse Mortgage Calculator
Enter your home's value, age, and current mortgage balance to estimate how much you might be eligible to borrow. This calculator helps you understand your options and plan for a more secure retirement using your home equity.
How Reverse Mortgage Works
Enter your property value, age, and preferred payment option (monthly, lump sum, or combination). The calculator estimates your monthly payment based on current reverse mortgage rates offered by banks like SBI, Central Bank of India, and PNB. It also shows the total loan that accumulates over the tenure.
Is Reverse Mortgage Right for You?
Reverse mortgage suits asset-rich but cash-poor senior citizens who own a property they want to continue living in. It provides regular income without selling the home. However, the interest compounds over time, reducing the equity available for heirs. Consider it only after exhausting other income sources like SWP, pension, and annuities.
Frequently Asked Questions
What is a reverse mortgage in India?
A reverse mortgage allows senior citizens (60+) to borrow against their self-owned residential property while continuing to live in it. The bank pays you a monthly amount, lump sum, or a combination. The loan is repaid from the sale of the property after the borrower's death or when they move out permanently.
How much can I get through reverse mortgage?
Banks typically lend 60-80% of the property's market value, depending on the borrower's age and property location. The loan tenure is 15-20 years. For a property valued at Rs 1 crore, you might receive Rs 20,000-40,000 per month depending on your age and the bank's terms.
Is reverse mortgage income taxable?
Monthly payments received through reverse mortgage are treated as a loan and are not taxable as income. The property continues to be in the borrower's name. If the legal heirs wish to retain the property after the borrower's death, they can repay the accumulated loan amount.
