How much home equity is required for a reverse mortgage?

Substantial equity in your home is required. Your home equity is calculated by taking the value of your home and subtracting all mortgage liens.

The amount of equity required varies based on your age and the interest rate of your reverse mortgage loan. The older that you are, the less home equity that is required to qualify.

 The table at the left is an approximate guide to the percentage of home equity required - based on a 5.5% reverse mortgage rate.
The left or y-axis shows the minimum home equity % required. A borrower needs this much home equity or greater to qualify. The bottom or x-axis is the age of the youngest borrower.

So for example, a 70 year old borrower would need approximately 40% home equity or greater to qualify for a reverse mortgage.

These numbers are approximate and will be different with a change in interest rates. To find out the amount of your equity based on today's interest rates, you may talk with one of our reverse mortgage consultants now and receive an exact quote - or for answers to other questions you may have.

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