Reverse Mortgage Calculator
Estimate how much you could borrow through a Home Equity Conversion Mortgage (HECM), the most common type of reverse mortgage, based on your age, home value, and existing mortgage balance.
Quick Answer
At age 72 with a $400,000 home and no existing mortgage, you could qualify for roughly $212,000 in reverse mortgage funds, available as a lump sum, monthly payments, or a line of credit.
Your Details
HECM reverse mortgages require the youngest borrower to be 62 or older.
Must be paid off at closing, usually from reverse mortgage proceeds.
Estimated Available Funds
$212,000
Principal Limit
$232,000
Payoff Existing Loan
$0
Est. Closing Costs
$20,000
Principal Limit Factor (PLF)
The amount you can borrow is based on a Principal Limit Factor, which rises with age and falls as interest rates rise.
Lump Sum Option
$212,000
One-time payout
Monthly Tenure Option
$1,180/mo
For as long as you live there
Line of Credit Option
$212,000
Draw as needed, grows over time
What Is a Reverse Mortgage Calculator?
A reverse mortgage calculator, also called a HECM calculator, estimates how much home equity you can convert to cash through a Home Equity Conversion Mortgage. Unlike a traditional mortgage, a reverse mortgage pays you instead of requiring monthly payments. The amount available depends primarily on the age of the youngest borrower, current home value, and prevailing interest rates.
How Age Affects Your Reverse Mortgage Amount
Older borrowers generally qualify for a higher percentage of their home's value, since the loan is expected to be outstanding for fewer years.
| Age | Approx. Principal Limit Factor |
|---|---|
| 62 | ~40-45% |
| 70 | ~50-55% |
| 80 | ~60-65% |
| 90+ | ~70-75% |
Actual HUD principal limit factors depend on official published tables and current expected interest rates. This is a simplified estimate.
How to Use This Calculator
- Enter the age of the youngest borrower (must be 62+).
- Enter your current home value.
- Enter any existing mortgage balance to be paid off.
- Set the expected interest rate.
- Review your estimated principal limit and payout options.
Frequently Asked Questions
What is a HECM?
HECM stands for Home Equity Conversion Mortgage, the most common type of reverse mortgage, insured by the Federal Housing Administration.
Do I still own my home with a reverse mortgage?
Yes. You retain ownership and title to your home as long as you meet loan obligations, including property taxes, insurance, and maintenance.
What happens to a reverse mortgage when I die?
The loan becomes due. Heirs can typically pay off the balance to keep the home, sell it to repay the loan, or let the lender sell it, with any remaining equity going to the estate.