Reverse Mortgage Calculator

It estimates a Home Equity Conversion Mortgage (HECM), the FHA-insured reverse mortgage. First it sets your maximum claim amount to the lesser of your home value and the FHA lending limit. Then it multiplies that amount by a principal limit factor based on the youngest borrower's age and the expected interest rate to get your principal limit, the total proceeds available over the life of the loan. Finally it subtracts the upfront FHA insurance premium and origination fee to estimate the cash you can access.

The principal limit factor is a HUD-published percentage that sets how much of your maximum claim amount you can borrow. It rises with the youngest borrower's age, because the loan is expected to run for fewer years, and it falls as the expected interest rate rises, because the loan balance compounds faster. For example, a 75-year-old at a 5% expected rate has a PLF of about 0.49, so roughly 49% of the claim amount becomes the principal limit. HUD floors the expected rate at 3%, so rates at or below 3% all use the same top factors.

Every borrower on the loan must be at least 62 years old, and the calculator uses the youngest borrower's age because that drives the principal limit factor. You must own the home outright or carry a low enough mortgage balance that the loan can pay it off, live there as your primary residence, and complete HUD-approved counseling. The home also has to meet FHA property standards.

HECM proceeds are based on the maximum claim amount, which is the lesser of your appraised home value and the FHA national HECM lending limit. That limit is $1,249,125 for 2026, and HUD resets it each year. If your home is worth more, the extra value does not increase your reverse mortgage proceeds, and you would need a proprietary jumbo reverse mortgage to tap it.

This calculator models two upfront charges. The first is the initial FHA mortgage insurance premium, a flat 2% of the maximum claim amount. The second is the origination fee, which is 2% of the first $200,000 plus 1% of the rest, bounded between $2,500 and $6,000. Other costs such as the appraisal, title, recording, and required counseling also apply but vary by lender and state. Any existing mortgage must be paid off first from the proceeds, which further lowers the cash you receive.

No. This tool gives an estimate using the published HUD principal limit factor tables and standard fee rules, not an official quote. Your actual proceeds depend on the current HUD factor tables, the lender's margin and index, your exact appraised value, and your payout choice such as a lump sum, line of credit, or monthly payments. Treat the result as a starting point and confirm figures with a HUD-approved counselor or lender. It is an estimate, not financial advice.