Reverse Mortgage Calculator: Estimate Your HECM Proceeds
This reverse mortgage calculator estimates how much equity you can access through a Home Equity Conversion Mortgage (HECM) — the federally insured reverse mortgage program. Enter your age, home value, existing mortgage balance, and expected interest rate to see your principal limit, net proceeds, and all available payout options.
How Reverse Mortgage Amounts Are Calculated
Principal Limit = Home Value × Principal Limit Factor (PLF)
Net Proceeds = Principal Limit − Upfront MIP (2%) − Closing Costs − Existing Mortgage
The PLF is set by HUD and increases with age. Older borrowers and lower interest rates result in a higher PLF and larger loan amounts.
Payout Options Explained
Lump Sum
Receive all available proceeds at closing. Only available with a fixed-rate HECM. Good for paying off large debts.
Monthly Tenure
Receive equal monthly payments for as long as you live in the home. Payments continue even if the loan balance exceeds home value.
Monthly Term
Receive fixed monthly payments for a set period (e.g., 10 years). Larger payments than tenure, but stop after the term ends.
Line of Credit
Draw funds as needed up to the credit limit. Unused portions grow over time at the loan interest rate — the most flexible option.
Reverse Mortgage Eligibility Requirements
- Must be 62 years old or older
- Home must be your primary residence
- Must have sufficient equity (generally 50%+ equity recommended)
- Must complete HUD-approved counseling before closing
- Must continue paying property taxes, insurance, and HOA fees
- Property must meet FHA minimum property standards
2024 HECM Lending Limit
The FHA maximum claim amount for HECM loans in 2024 is $1,149,825. Homes worth more than this amount are still eligible, but the loan amount calculation is capped at this limit. For higher-value homes, jumbo (proprietary) reverse mortgages may offer larger proceeds.
Frequently Asked Questions
What is a reverse mortgage?▾
A reverse mortgage is a type of home loan available to homeowners aged 62 and older that allows them to convert part of their home equity into cash. The most common type is the Home Equity Conversion Mortgage (HECM), which is insured by the FHA. Unlike a traditional mortgage, you do not make monthly payments. Instead, the loan balance grows over time and is repaid when you sell the home, move out, or pass away.
How much can I get from a reverse mortgage?▾
The amount you can receive depends on three main factors: your age (older borrowers qualify for more), your home's appraised value (subject to the FHA lending limit of $1,149,825 in 2024), and current interest rates (lower rates mean higher payouts). The maximum loan amount is calculated using a Principal Limit Factor (PLF) set by HUD. After deducting upfront costs — including a 2% MIP and closing costs — and paying off any existing mortgage, the remainder is your available proceeds.
What is the minimum age for a reverse mortgage?▾
The minimum age to qualify for an FHA-insured HECM reverse mortgage is 62 years old. If the home has two owners, both must be at least 62 (or the younger non-borrowing spouse must be listed on the loan under HUD's non-borrowing spouse protections). Some proprietary (non-FHA) reverse mortgages accept borrowers as young as 55.
Do I still own my home with a reverse mortgage?▾
Yes. With a reverse mortgage you retain the title to your home. You remain the owner as long as you live in the home as your primary residence, keep up with property taxes and homeowner's insurance, and maintain the property in good condition. The lender does not take ownership; they simply have a lien on the property.
When does a reverse mortgage become due?▾
A reverse mortgage becomes due and payable when the last surviving borrower passes away, permanently moves out of the home, sells the property, or fails to meet loan obligations such as paying property taxes, homeowner's insurance, or maintaining the home. Heirs can repay the loan and keep the home, sell the home to pay off the loan, or do a deed-in-lieu if the balance exceeds the home's value (FHA insurance covers the shortfall).
