See how a reverse mortgage balance grows over time as interest and insurance compound, and when it roughly doubles.
Educational estimate. Actual proceeds depend on rates, HUD limits and a HECM counselor.
A reverse mortgage accrues interest and mortgage insurance instead of being paid down. We compound your starting balance at the combined rate to project future balance.
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The appeal of a reverse mortgage — no monthly payments — is also its cost: the balance compounds. Each year, interest and mortgage insurance are added on top, so the amount owed climbs steadily and erodes the equity you’ll leave behind. The good news is the federal HECM is non-recourse: you or your heirs will never owe more than the home is worth when it’s sold. Seeing how fast the balance doubles helps you judge whether the cash today is worth the equity tomorrow.
Yes — interest and insurance are added to the balance each year since you make no payments.
At ~7.5% it roughly doubles in about 10 years; lower rates take longer.
HECMs are non-recourse — you (or heirs) never owe more than the home's value.
No — it's an estimate; actual rates vary.