← Loan OriginationSee How the RCM
Equity Growth Calculator
See How the RCM
Builds Equity Faster
Adjust the sliders below and compare year-by-year equity growth between the Reversed Conventional Mortgage and a standard amortized loan.
$500,000
$100K$2M
7.0%
2%12%
30 years
10yr30yr
Monthly Payment
$3,327
Same for both RCM and conventional
RCM Equity Advantage at Year 5
+$170,249
| Year | RCM Balance | RCM Equity | Deferred Interest | Conv. Balance | Conv. Equity | Interest Paid | Equity Diff |
|---|---|---|---|---|---|---|---|
| 1 | $460,082 | $39,918 | $33,719 | $494,921 | $5,079 | $34,839 | +$34,839 |
| 2 | $420,164 | $79,836 | $64,644 | $489,475 | $10,525 | $69,311 | +$69,311 |
| 3 | $380,246 | $119,754 | $92,775 | $483,635 | $16,365 | $103,389 | +$103,389 |
| 4 | $340,327 | $159,673 | $118,112 | $477,373 | $22,627 | $137,045 | +$137,045 |
| 5 | $300,409 | $199,591 | $140,654 | $470,658 | $29,342 | $170,249 | +$170,249 |
| 6 | $260,491 | $239,509 | $160,402 | $463,458 | $36,542 | $202,967 | +$202,967 |
| 7 | $220,573 | $279,427 | $177,355 | $455,737 | $44,263 | $235,164 | +$235,164 |
| 8 | $180,655 | $319,345 | $191,515 | $447,458 | $52,542 | $266,803 | +$266,803 |
| 9 | $140,737 | $359,263 | $202,880 | $438,581 | $61,419 | $297,844 | +$297,844 |
| 10 | $100,819 | $399,181 | $211,451 | $429,062 | $70,938 | $328,243 | +$328,243 |
| 11 | $60,900 | $439,100 | $217,227 | $418,855 | $81,145 | $357,954 | +$357,954 |
| 12 | $20,982 | $479,018 | $220,210 | $407,910 | $92,090 | $386,927 | +$386,927 |
| 13 | $0 | $500,000 | $220,659 | $396,173 | $103,827 | $415,109 | +$396,173 |
| 14 | $0 | $500,000 | $220,659 | $383,589 | $116,411 | $442,443 | +$383,589 |
| 15 | $0 | $500,000 | $220,659 | $370,094 | $129,906 | $468,867 | +$370,094 |
| 16 | $0 | $500,000 | $220,659 | $355,624 | $144,376 | $494,315 | +$355,624 |
| 17 | $0 | $500,000 | $220,659 | $340,108 | $159,892 | $518,717 | +$340,108 |
| 18 | $0 | $500,000 | $220,659 | $323,471 | $176,529 | $541,997 | +$323,471 |
| 19 | $0 | $500,000 | $220,659 | $305,630 | $194,370 | $564,075 | +$305,630 |
| 20 | $0 | $500,000 | $220,659 | $286,500 | $213,500 | $584,863 | +$286,500 |
| 21 | $0 | $500,000 | $220,659 | $265,987 | $234,013 | $604,269 | +$265,987 |
| 22 | $0 | $500,000 | $220,659 | $243,992 | $256,008 | $622,191 | +$243,992 |
| 23 | $0 | $500,000 | $220,659 | $220,406 | $279,594 | $638,523 | +$220,406 |
| 24 | $0 | $500,000 | $220,659 | $195,115 | $304,885 | $653,150 | +$195,115 |
| 25 | $0 | $500,000 | $220,659 | $167,996 | $332,004 | $665,949 | +$167,996 |
| 26 | $0 | $500,000 | $220,659 | $138,916 | $361,084 | $676,788 | +$138,916 |
| 27 | $0 | $500,000 | $220,659 | $107,734 | $392,266 | $685,524 | +$107,734 |
| 28 | $0 | $500,000 | $220,659 | $74,298 | $425,702 | $692,006 | +$74,298 |
| 29 | $0 | $500,000 | $220,659 | $38,445 | $461,555 | $696,071 | +$38,445 |
| 30 | $0 | $500,000 | $220,659 | $0 | $500,000 | $697,544 | +$0 |
RCM: 100% of payment to principal, interest deferred. Conventional: standard amortization. Same monthly payment for both. Home value held constant (no appreciation). Illustrative only.