Reverse Mortgage Estimate Calculator
Get a rough estimate of the funds a HECM reverse mortgage could provide, based on the youngest borrower's age, home value and the expected rate.
How it works
Principal limit = min(home value, HECM limit) × PLF · PLF rises with the youngest borrower's age and falls as the expected rate rises · Available = principal limit − existing balance − closing costs
A HECM reverse mortgage lets homeowners 62+ borrow against equity with no monthly repayment; the loan is settled when the home is sold or vacated. The amount available is the home value (capped at the FHA lending limit) times a Principal Limit Factor that grows with the borrower's age and shrinks as rates rise. Any existing mortgage must be paid off first from the proceeds, which is why remaining balances reduce the cash available.
Worked example
A 70-year-old with a $400,000 home at a 6.5% expected rate might see a principal limit factor near 40%, for a principal limit around $160,000. With no existing mortgage, most of that (minus closing costs, not shown here) could be available as a lump sum, line of credit or monthly payments.
Frequently asked questions
How accurate is this estimate?
It is a rough illustration only. Real HECM principal limit factors come from official HUD tables that depend on precise age, the exact expected rate and current program rules, and lender fees and mortgage insurance further reduce the net proceeds. Use it to gauge ballpark feasibility, then get an official quote.
Why does a higher interest rate lower the amount?
A reverse mortgage balance grows over time as interest accrues without payments. A higher expected rate means the balance would grow faster, so the lender advances less up front to keep the eventual payoff within the home's value.
Do I still own my home?
Yes. You keep title and can stay as long as you maintain the home, pay property taxes and insurance, and keep it as your primary residence. The loan comes due when the last borrower sells, moves out permanently or passes away.
Related calculators
Educational estimate only — not financial, tax or lending advice. Confirm exact figures with your lender.