San Diego · Reverse Mortgages

Savings vs. Home Equity Calculator

By Amanda LaRussa · Mortgage Broker, NMLS #2166834 · Licensed in CA, AZ, TX

Most homeowners hold their wealth in two places: their home and their investments. Enter your numbers to see how each path could play out over time.

How to use this calculator

  • Staying in your home: see what happens if you pay for monthly needs from your investments (Path A) versus from a reverse mortgage credit line first (Path B)
  • Buying your next home: compare a HECM for Purchase (H4P) with paying all cash or taking a regular 30-year mortgage
  • Open "Assumptions you can change" to adjust investment growth, home value growth, the loan rate, and how many years to look ahead
  • Try the market-drop option to see how an early down market affects each path

What the results do and do not show

A reverse mortgage charges interest and fees, and the loan balance grows over time. That means less home equity left for you or your heirs. The calculator shows this cost, even when it makes one path look less attractive.

What a reverse mortgage can add is flexibility. It may let you keep your investments invested instead of selling them to cover spending, especially in a down market. Whether that is worth the cost depends on your situation.

These are educational illustrations based on the numbers you enter. Investment returns, home values, and interest rates change and are not guaranteed.

What is a HECM for Purchase (H4P)?
A HECM for Purchase is an FHA-insured reverse mortgage used to buy a home. The borrower, who must be 62 or older, puts down a larger down payment than on a typical purchase, and the reverse mortgage covers the rest. There is no required monthly mortgage payment, but you must pay property taxes, homeowners insurance, and upkeep, and live in the home as your primary residence.
Will I or my heirs owe more than the home is worth?
A HECM is a non-recourse loan. When the loan is repaid, you or your heirs never owe more than the home is worth at that time, as long as the loan terms were met. The loan balance can still grow larger than the equity that remains.
Are the calculator results a loan quote?
No. The calculator is educational. Your actual loan amount depends on your age, home value, and current rates. For a personalized analysis, schedule a conversation with Amanda.

Want to talk through your situation?

Schedule a conversation with Amanda LaRussa, NMLS #2166834 — no pressure, just clear answers.

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