A reverse mortgage is a loan. You are borrowing against your home equity. However, unlike traditional mortgages, with a reverse mortgage you do not have to pay back the money borrowed as long as you are living in the home.

For many senior households, housing is usually the most costly expense as well as the most valuable asset. A reverse mortgage takes advantage of both of these facts. The loan enables you to eliminate ongoing mortgage payments, and for borrowers with sufficient home equity, access cash to use as needed or desired. However, the decision to secure the loan can be complicated and confusing.


Almost all financial products have pros and cons. Reverse mortgages are no exception.

Some of the factors you will want to consider include:

  • Your need for supplemental income or improved cash flow by eliminating mortgage payments

  • Your desire for financial independence

  • Your ability to stay in your existing home for the long term

  • Your financial values and attitudes toward loans

  • Your interest in maximizing your estate for heirs


What Are the Main Reasons Other People Get a Reverse Mortgage?

Mortgages and Refinance offers a Reverse Mortgage Suitability Calculator that assesses whether or not the loan is a good fit for you. So far over 370,000 people have used this tool, and for these people the strongest reasons to secure a reverse mortgage are:

  • The desire for financial independence

  • The wish to remain in their own home for the rest of their lives


For those with some savings — but perhaps not enough to feel comfortable throughout retirement — the line of credit option provides instant access to cash to optimize drawdown strategies when unexpected expenses arise and during market downturns. If you get the line of credit now, the amount you can borrow grows as you age, effectively locking in immediate access to home equity when you need it most.

On the other hand, the advantages of the loans are clear. Reverse mortgages enable you to eliminate your traditional mortgage payments and/or access your home equity while still owning and living in your home. Given the right set of circumstances, a reverse mortgage can be an ideal way to increase your spending power and financial security in retirement.

Furthermore, the loans are flexible, have a low risk of default and are tax free.

New Reverse Mortgage Calculator Assesses Your Suitability – Is a Reverse Mortgage Right for You?

Many reverse mortgage calculators exist to help you estimate your loan amount or to assess whether you qualify for the loan or not, but – until now – nothing has helped you assess your suitability for a reverse mortgage.

Mortgages and Refinance is proud to introduce the Reverse Mortgage Suitability Test. This calculator takes you through five questions and assesses whether the loan is something you should consider or not.

Reverse mortgages can be great for many people but is it right for you? The reverse mortgage suitability test gives you an overall grade about whether or not a reverse mortgage is something you should consider. You also get personalized commentary on various aspects of the loan and how they will impact your retirement.