Reverse Mortgage Calculator
Estimate Home Equity Conversion Mortgage (HECM) proceeds, payout options and long-term balance growth for homeowners 62+.
Inputs
How it works
HECM proceeds = Home value × Principal Limit Factor (set by HUD based on age and rate). We subtract any existing mortgage, the upfront MIP (2% of home value), origination fee and closing costs to get your net available funds.
Three payout options share the same pool: a lump sum, a monthly tenure payment based on life expectancy, or a growing line of credit (the unused portion grows at the note rate + 0.5% MIP).
Frequently asked questions
Who qualifies for a reverse mortgage?
HECM borrowers must be 62 or older, occupy the home as primary residence, have significant equity, and stay current on property taxes and insurance.
Do I still own the home?
Yes. You retain title. The loan is repaid when you sell, move out permanently, or pass away.
What is the Principal Limit Factor (PLF)?
A HUD table converting age + rate into how much equity you can access. Older borrowers and lower rates produce larger limits.
Can my heirs keep the home?
Yes — heirs may pay off the loan balance (or 95% of appraised value, whichever is less) to keep the property.
Are reverse mortgages risky?
They are heavily regulated and non-recourse, but the balance compounds and costs are high. They suit retirees who want to age in place, not those planning to move soon.
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View all mortgage →Results are estimates for educational purposes only and are not financial advice. Verify with a qualified professional before making decisions.
Last updated January 1970