FINANCIAL · REVERSE MORTGAGE

Reverse Mortgage Calculator

Estimate your HECM reverse mortgage proceeds — principal limit, net available lump sum, and estimated monthly tenure payment — based on your home value, age, and current interest rate.

Property & Borrower

Must be paid off at closing from the reverse mortgage proceeds

Minimum age for HECM is 62

1-yr CMT + lender margin (ask your lender)

Closing Costs

Title, appraisal, recording fees (default: $3,000)

02 Estimate
Net Available Proceeds
$173,400.00
Lump sum available (estimated)
Est. monthly tenure payment$930.85
Principal limit$190,400.00
Effective home value$400,000.00
Upfront MIP (2%)$8,000.00
Origination fee$6,000.00
Other closing costs$3,000.00
Total upfront costs$17,000.00

About This Calculator

Estimate how much you could receive from a Home Equity Conversion Mortgage (HECM) — the most common FHA-insured reverse mortgage. Enter your home value, age, and expected interest rate to see the principal limit, net proceeds after costs, and an estimated monthly tenure payment.

How It Works

The key driver is the Principal Limit Factor (PLF), an HUD-determined percentage that depends on the youngest borrower's age and the expected interest rate. The calculator applies an approximation of the HUD PLF table to your effective home value (capped at the 2026 FHA limit of $1,209,750), then subtracts the upfront MIP (2%), origination fee (HUD formula), other closing costs, and any existing mortgage that must be paid off at closing. The result is the net available lump sum. The estimated monthly tenure payment uses a simplified annuity model to age 100.

The Formula

Net Available = (Home Value × PLF) − Existing Mortgage − Upfront Costs

PLF
Principal Limit Factor — HUD age/rate table approximation
Upfront MIP
2% of effective home value (FHA mortgage insurance premium)
Origination Fee
HUD formula: 2% of first $200k + 1% above, min $2,500 / max $6,000

Frequently Asked Questions

What is a HECM reverse mortgage?
A Home Equity Conversion Mortgage (HECM) is an FHA-insured reverse mortgage for homeowners 62 and older. It lets you convert home equity into cash — as a lump sum, line of credit, monthly payments, or a combination — without selling your home or making monthly mortgage payments. The loan is repaid when you sell the home, move out permanently, or pass away.
Are these estimates accurate?
This calculator provides an approximation. Actual HECM proceeds depend on the lender's current PLF table (HUD publishes these periodically), a formal appraisal, underwriting decisions, and the current 10-year LIBOR rate used in the official calculation. Use these numbers for initial planning only; request formal quotes from FHA-approved lenders.
Does the 2026 FHA home value limit affect me?
The 2026 HECM lending limit is $1,209,750. If your home is appraised above this, the calculator still applies — but the principal limit is calculated on $1,209,750, not the full appraised value. Homes above the FHA limit may qualify for a proprietary (jumbo) reverse mortgage, which isn't covered by this calculator.
Do I have to repay the loan?
You (or your heirs) repay the loan when the home is sold, you permanently leave the home, or you pass away. The loan balance grows over time as interest accrues. You never owe more than the home's value — HECMs are non-recourse loans. Your estate keeps any remaining equity after the loan is paid off.
Who is eligible for a HECM?
You must be at least 62, own your home outright or have a small remaining mortgage (paid off at closing from the HECM proceeds), occupy the home as your primary residence, and keep up with property taxes and insurance. If you have a non-borrowing spouse under 62, they may remain in the home under special HUD deferral provisions.