Home Equity · 6 min read
You Own a $4 Million Home. How Much of That Equity May Actually Be Accessible?
A $4,000,000 residence with a $500,000 mortgage represents an estimated $3,500,000 in home equity. That figure describes the asset — it does not describe the amount a homeowner may be able to access.
Available proceeds under a proprietary reverse mortgage are determined by the applicable program and lender underwriting. Borrower age, appraised property value, existing liens, property characteristics and prevailing interest rates all influence the outcome.
A useful mental model is a sequence rather than a single number: home value, less existing liens, equals estimated home equity — and then a portion of that equity may potentially be accessible, subject to program requirements.
Existing liens are generally satisfied from proceeds, which is why a low mortgage balance relative to property value typically produces a more meaningful liquidity picture.
No estimate, including the one produced by our calculator, is an offer, approval or commitment to lend. It is a starting point for a conversation with a specialist who can review the property and the applicable programs.
Check your equity
See an illustrative estimate of your home equity and the portion that may potentially be accessible.
Illustrative information only. This calculator does not constitute an offer, approval, commitment to lend or guarantee of available proceeds. Actual eligibility and proceeds depend on borrower age, property value, appraisal, existing liens, property characteristics, interest rates, applicable proprietary program and lender underwriting requirements. Interest and applicable costs may accrue to the loan balance. Program availability and terms vary.