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Rising-Balance Payoff Calculator

A reverse mortgage, a home equity investment, or any loan whose balance grows instead of shrinking. Set the rate it actually grows at, then compare letting it run against paying it off — and see what each leaves you in the house.
Client education tool
What you have now

Your reverse mortgage today

Home value todayyour best estimate
Appreciation% per year, can be negative
Balance owed todayfrom your latest statement
Interest ratenote rate on your statement, %/yr
Annual mortgage insuranceFHA HECM: 0.5%/yr
Payment you make now$/month, below the interest
Cash you receivedthe investment amount
Investor's share% of the home's value at exit
Years since you took it0 = just signed
Payoff cap%/yr compounded monthly; 0 = none
Some contracts cap the buyback at the investment grown at a fixed rate, and you pay whichever is lower. Splitero's 1.499% a month is about 18% a year. Leave it at 0 if yours has no cap.

How you'd pay it off

New loan rate%/yr, the rate you're weighing
New loan termyears
Closing costsrolled into the new loan
Extra principal$/month on top of the payment; 0 = none
Pay the extra foryears; 0 = until it's paid off
Monthly payment toward it
A HECM can be prepaid in any amount, any month, with no penalty. Payments first cover the mortgage insurance and interest that month, then reduce the balance.
What your money earns otherwise%/yr on savings
Every dollar you put toward the payoff is a dollar not sitting in savings. The comparison grows those dollars at this rate so paying off doesn't look free.
Compare after
Owed today
Growing at
Added this month
Home value then
Paying it off leaves you
Comes out ahead
Let it grow
Equity left
Paid out of pocket
Savings kept, grown
Net position
Comes out ahead
Refinance it now
Equity left
Paid out of pocket
Savings kept, grown
Net position
Balance added if kept
New monthly payment
Pays off from
the first year paying it off is ahead, savings counted

What you'd owe, year by year

Let it grow Refinance it now Home value
Balance owed by year under each choice.
YearHome valueOwed, let it growOwed, refinancedEquity gapNet difference
Say it to the client

How it's figured. A reverse mortgage or other rising balance grows monthly at the interest rate (plus annual mortgage insurance on a HECM), less any payment made that month. A home equity investment's buyback is the investor's share of the home's projected value, or the capped amount where the contract has a cap, whichever is lower. "Net position" is equity left in the home plus every dollar not spent on the payoff, grown at the savings rate you set, minus what the payoff took from savings — so both columns count the same money. Extra principal on a refinance is paid on top of the scheduled payment each month, for the years you set or until the loan is gone, and counts as money out of pocket like the payment itself. Refinance payments are principal and interest only: no taxes, homeowners insurance, or mortgage insurance, and they assume the payment comes out of money that would otherwise be saved. A HECM is non-recourse: neither you nor your heirs owe more than the home is worth, so where the balance passes the home's value the owed figure stops at the value. Adjustable-rate HECMs move with their index; this holds the rate you enter constant. No taxes, no tax effects, and no prepayment penalties.

Illustration only. Rates entered here are your assumptions, not quotes; the figures are estimates, not offers or commitments to lend. Actual terms depend on credit, property, program, and market conditions, and every loan is subject to underwriting approval. Replacing a reverse mortgage or HEI with a forward mortgage adds a required monthly payment, and a home equity investment is a contract, not a loan — its buyback amount is set by your agreement and the provider's appraisal. By refinancing your existing loan, your total finance charges may be higher over the life of the loan. Ryan Rybarczyk, Mortgage Loan Originator, NMLS #2849572 · Dynagen Lending LLC, NMLS #2179695 · Licensed in Michigan · Equal Housing Opportunity · Verify licensing at NMLS Consumer Access. Privacy notice.