Reverse Mortgage Payments & Costs
How much you can get, five ways to receive it, what it costs, and when the loan is due — all explained clearly so you can make an informed decision.
How much can you receive?
The amount available to you from a reverse mortgage depends on four factors. There is no single answer — every household is different, which is why a personalized estimate is always the first step.
Your age
The older the youngest borrower on the title, the more you can receive. Age is the single largest driver of your loan amount.
Home equity
The more equity you have — the more of your home you own outright — the more is available to you. The 2026 FHA lending limit is $1,209,750.
Interest rate
Lower interest rates mean more money available. Higher rates reduce your available proceeds because more of the loan is reserved for future interest.
Existing mortgage
If you have a current mortgage, it must be paid off first with the reverse mortgage proceeds. The remaining balance is what becomes available to you.
If you have an existing mortgage, the reverse mortgage pays it off at closing — eliminating your monthly payment. Depending on your balance, you may receive additional funds, or the benefit may simply be the elimination of that payment. Either way, no longer having a mortgage payment is a meaningful improvement to most retirement budgets.
The only way to know your specific number is a personalized estimate. We provide those free, with no obligation and no credit pull.
5 ways to receive your funds
One of the most underappreciated features of a reverse mortgage is the flexibility in how you receive your proceeds. You are not locked into one option — and you can even change your plan later for a small fee.
Plans are not permanent. Once you choose a payment plan, you can switch to a different option for a small administrative fee. You are not locked in for the life of the loan.
The costs explained
A reverse mortgage is a loan, and like any loan it comes with costs. Here is a clear breakdown of what to expect. The good news: most costs can be financed into the loan, so you typically pay nothing out of pocket at closing.
+ 0.5%/yr
Repayment of the loan
While you are living in the home, you are never required to make a payment on a reverse mortgage. The loan becomes due when the last borrower permanently leaves — through a sale, a move to a care facility, or passing away. At that point, the home is typically sold and the proceeds repay the loan. Any remaining equity goes to you or your heirs.
However, there are circumstances that can trigger early repayment. These are standard protections that ensure the property maintains its value as loan collateral:
- Failure to pay property taxes or homeowners insurance
- Failure to maintain and repair the home
- Abandonment or condemnation of the home
- Declaration of bankruptcy
- Fraud or misrepresentation on the application
- Renting out part or all of the home
- Adding a new owner to the title
- Taking out new debt secured against the home
Lenders typically give borrowers or heirs six months to repay or sell the home before beginning foreclosure proceedings. In most cases, this is more than enough time to arrange a sale and settle the loan.
We went in thinking the costs would be a dealbreaker. Chad walked us through every number — no surprises, no pressure. The math made sense and we moved forward with confidence.
More resources
Ready to see your numbers?
A free, no-obligation estimate from a Utah loan officer who has been doing this since 2008. No fees, no credit pull, no pressure.
NMLS #1382816 | Utah DRE #9441193 | This material is not from HUD or FHA and has not been approved by HUD or a government agency. A reverse mortgage is a loan that must be repaid. Borrowers must continue to pay property taxes, homeowners insurance, and maintain the property as a primary residence.
Utah's reverse mortgage specialists since 2008. Helping Utah retirees live the retirement they imagined.
HUD/FHA Notice: This material is not from HUD or FHA and has not been approved by HUD or a government agency.
Loan Repayment: A reverse mortgage is a loan that must be repaid. Borrowers must continue to pay property taxes, homeowners insurance, and maintain the property as a primary residence. Failure to do so may result in foreclosure.
Reverse Freedom Mortgage is licensed in the State of Utah. NMLS #1382816, Utah DRE License #9441193.
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