Reverse Mortgage Calculator

Calculate HECM proceeds and payment options (Age 62+)

Home & Borrower
HECM Details
HECM Proceeds Summary
Principal Limit: $0.00
Less: Payoff Mortgage: -$0.00
Less: Upfront MIP: -$0.00
Net Available Proceeds
$0.00
Tenure Payment: $0.00/month
Term Payment (20 yr): $0.00/month
Line of Credit: $0.00 available
Important Note
Reverse mortgages allow you to access home equity without monthly payments. Loan is repaid when you sell, move out, or pass away.

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What is a Reverse Mortgage?

A reverse mortgage (Home Equity Conversion Mortgage or HECM) allows homeowners aged 62+ to convert home equity into cash without monthly mortgage payments. The loan is repaid when the borrower sells the home, moves out permanently, or passes away.

Unlike traditional mortgages where you make payments to the lender, the lender pays you—either in a lump sum, monthly payments, line of credit, or a combination. The loan balance grows over time as interest accrues.

How to Use This Calculator

Step 1: Enter your home's current value.
Step 2: Input any existing mortgage balance.
Step 3: Enter age of youngest borrower (must be 62+).
Step 4: Input expected interest rate.
Step 5: Click "Calculate" to see available proceeds.
Step 6: Review tenure, term, and line of credit options.

HECM Requirements

  • Age: Youngest borrower must be 62+
  • Primary Residence: Must live in the home as main residence
  • Equity: Sufficient home equity required (typically 50%+)
  • Financial Assessment: Must demonstrate ability to pay taxes, insurance, maintenance
  • Counseling: Required HUD-approved counseling session
  • Property Type: Single-family, 2-4 unit, approved condos, some manufactured homes

HECM Costs

  • Upfront MIP: 2% of home value (can be financed)
  • Annual MIP: 0.5% of outstanding balance
  • Origination Fee: Up to $6,000 depending on home value
  • Appraisal: $300-500
  • Closing Costs: Title, recording, credit report fees
  • Servicing Fee: Monthly fee (varies by lender)

Reverse Mortgage Considerations

  • Non-Recourse Loan: You never owe more than home value
  • Heirs Impact: Loan must be repaid when you pass—heirs may need to sell home
  • Home Retention: Must continue paying taxes, insurance, maintenance or face foreclosure
  • Costs: High upfront costs make short-term use inefficient
  • Means Testing: Some needs-based programs may be affected

Frequently Asked Questions

Who owns the home with a reverse mortgage?
You retain ownership. The lender places a lien on the property. You can sell anytime—proceeds pay off the loan balance, and you keep any remaining equity. Heirs inherit the home but must repay the loan.
Do I make monthly payments on a reverse mortgage?
No monthly mortgage payments required. However, you must pay property taxes, homeowners insurance, and maintain the home. The loan balance grows as interest accrues and is repaid when you leave the home.
How is a reverse mortgage repaid?
When you sell, move out permanently, or pass away, the loan becomes due. Heirs can repay from other funds or sell the home. If sale proceeds don't cover the balance, FHA insurance covers the shortfall (non-recourse feature).
Can I lose my home with a reverse mortgage?
Yes, if you fail to pay property taxes, insurance, or maintain the home. You must also occupy the home as your primary residence. Extended absences (12+ months) can trigger loan repayment requirements.
How much can I borrow with a reverse mortgage?
Depends on: home value, age of youngest borrower, current interest rates. Older borrowers get more. 2026 HECM limit is $1,149,825. Principal limit factors range from ~35% (age 62) to ~75% (age 90+).
Does a reverse mortgage affect Social Security or Medicare?
Generally no. However, if proceeds are not spent immediately and increase savings, needs-based programs like Medicaid or SSI could be affected. Consult a benefits counselor. Spend proceeds or structure as line of credit to minimize impact.
What happens if I outlive the loan?
You cannot outlive a tenure payment plan—payments continue for life. With a line of credit, you can draw until exhausted. Loan balance can exceed home value, but you keep the home and FHA insurance covers the lender.
Can I refinance a reverse mortgage?
Yes, if home value has increased significantly or rates have dropped. You can also refinance to access more funds if you're older. Each refinance incurs new costs, so evaluate carefully.
Are reverse mortgages a scam?
Legitimate HECMs are FHA-insured and heavily regulated. However, seniors are sometimes targeted by fraudsters. Work with HUD-approved counselors and reputable lenders. Be wary of unsolicited offers and pressure tactics.
Should my heirs be concerned?
Yes, discuss with them. Heirs inherit the home but must repay the loan—often by selling. If loan balance exceeds home value, they can walk away (non-recourse). Open communication helps avoid surprises and family conflict.
What's the difference between HECM and proprietary reverse mortgages?
HECMs are FHA-insured with limits ($1,149,825 in 2026). Proprietary (jumbo) reverse mortgages work with higher-value homes but lack FHA insurance. HECMs offer more protections; proprietary loans may offer higher amounts for expensive homes.
When does a reverse mortgage NOT make sense?
Short-term need (high upfront costs), plan to move soon, want to leave home free-and-clear to heirs, insufficient equity, cannot afford taxes/insurance, or better alternatives exist (HELOC, downsize, sell and rent).