For educational purposes only. Not financial advice. Always consult a licensed mortgage professional. Read disclaimer
Reverse Mortgage vs. Home Equity Investment Calculator
The first interactive side-by-side comparison of reverse mortgages and home equity investments (HEIs). Adjust your home's projected appreciation to see which option costs more over your time horizon.
Important — read before using this calculator
This calculator provides estimates only. Actual reverse mortgage loan amounts, interest rates, fees, and terms vary significantly by lender, your age, home value, and credit profile. HECM reverse mortgages require HUD counseling before closing.
Home Equity Investment terms vary by provider (Unison, Point, Hometap, Splitero, etc.). The appreciation share percentage and other terms depend on your specific agreement — enter the figures from any actual offer you've received for the most accurate comparison.
This is not financial advice. Consult a HUD-approved counselor and a licensed financial advisor before making decisions about accessing your home equity.
Not financial advice. For informational purposes only. HECM requires age 62+; proprietary reverse mortgages may allow age 55+ in some states.
Your situation
HECM requires 62+; some proprietary products allow 55+
Key variable — higher appreciation makes HEI costlier
Reverse mortgage
Est. principal limit factor: 57% of home value (approx.; varies by age and rates — not a lender quote). Max available proceeds: $106,500.
Illustrative rate — actual rates vary by lender.
Capped at estimated max available ($106,500)
Home equity investment (HEI)
Enter the lump sum from your HEI offer
Typical range 15–40%
Most HEI contracts are 10–30 years
Crossover insight
At 7.5% annual appreciation, both options have roughly the same effective cost over 10 years. At your 3.0% rate, the reverse mortgage costs more than the HEI.
Side-by-side comparison
After 10 years at 3.0% annual appreciation
| Reverse Mortgage | Home Equity Investment | |
|---|---|---|
| Cash received today | $100,000 | $100,000 |
| Estimated home value at end of term | $604,762 | $604,762 |
| Amount owed at end of term | $231,111 (loan + interest) | $151,191 (25% of home value) |
| Remaining equity to you/heirs | $373,651 | $453,572 |
| Effective total cost | $131,111 | $51,191 |
Lower cost option
HEI
How reverse mortgages and HEIs actually differ
A reverse mortgage is a loan that lets homeowners aged 62 and older (HECM) access their home equity without monthly mortgage payments. Instead, interest accrues on the loan balance over time. FHA-insured HECM reverse mortgages include non-recourse protection — you or your heirs never owe more than the home is worth when the loan is repaid, typically when the home is sold. Payout options include a lump sum, a line of credit, or monthly payments, giving flexibility for ongoing or one-time needs.
A home equity investment (HEI) is not a loan at all. Providers like Unison, Point, Hometap, and Splitero offer a lump sum today in exchange for a contract giving them a percentage of your home's future value — often 15% to 40% of appreciation or total value at settlement. There is no interest accruing and no monthly payment, but the cost is directly tied to how much your home appreciates. If your home gains significantly in value, the HEI provider's share grows with it.
When a reverse mortgage may win: longer time horizons with moderate appreciation expectations, when you need flexible ongoing access to funds (especially via a growing line of credit), or when you prefer the predictability of accruing interest over an open-ended appreciation share. Reverse mortgages also carry FHA insurance and established regulatory protections for HECM borrowers.
When an HEI may win: shorter time horizons, when you want to avoid interest accrual entirely, when you need a one-time lump sum without adding debt to your balance sheet, or when you don't meet HECM's age 62 requirement and a proprietary reverse mortgage isn't available or attractive. HEIs can also make sense when you expect modest home price growth — keeping the provider's share relatively low.
Frequently Asked Questions
What is a home equity investment (HEI)?▾
How is a reverse mortgage different from an HEI?▾
Which is better: a reverse mortgage or a home equity investment?▾
What age do you need to be for a reverse mortgage?▾
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Try this calculator →Reverse Mortgage vs. HEI: 2026 Guide
Compare reverse mortgages and home equity investments — how each works and what they cost.
Read this guide →What Is a Home Equity Investment (HEI)?
Plain-English guide to how HEIs work, what they cost, and who they're for.
Read this guide →When Does a Reverse Mortgage Make Sense?
Situations where a HECM is the right tool — and when to look elsewhere.
Read this guide →Rate defaults based on Freddie Mac PMMS. Property tax rates from ATTOM Data. FHA MIP rates from HUD.gov. VA funding fees from VA.gov. Last updated July 2026. Learn about our data sources.