Reverse Mortgage Calculator

HECM proceeds estimator

See a rough estimate of your principal limit and how proceeds could be paid out. Estimates only

New to reverse mortgages? Read the plain-English explainer first.

A reverse mortgage is a loan, not a benefit. Property taxes, homeowners insurance, HOA dues, and home maintenance remain your responsibility, and you must occupy the home as your primary residence. The loan balance grows over time as interest and fees accrue. This calculator uses a simplified approximation of HUD's Principal Limit Factor table; actual proceeds depend on the current HUD PLF, the actual expected rate, and lender-specific fees. HUD-approved counseling is required before HECM application.

Your Numbers

Age of youngest borrower70

HECM requires age 62+. Some proprietary products allow 55+. PLF increases with age.

Estimated home value$500,000

HECM caps the value used at the national lending limit ($1,249,125 in 2026). Higher values may use a proprietary jumbo program instead.

Existing mortgage balance to pay off$50,000

Any remaining mortgage must be paid off from the HECM proceeds at closing.

Estimated total upfront costs5.00% ($25,000)

Includes upfront MIP (typically 2% of value), origination, and third-party closing costs. Most fees are financed into the loan.

Expected rate7.00%

Illustrative only, not a quote. Higher expected rates reduce the principal limit.

Estimated Results

Estimated Principal Limit

$173,000

MCA $500,000 x PLF 34.6%

Estimated Net Available to You

$98,000

After paying off $50,000 existing mortgage and $25,000 estimated closing costs.

Disbursement Options

Lump sum (fixed-rate only)

$98,000 one-time at closing

Line of credit (adjustable-rate)

$98,000 initial draw capacity

The unused portion of the LOC grows over time at the note rate plus ongoing MIP, increasing your available draw the longer you wait.

Monthly tenure payments

$729 per month, illustrative

Rough annuity over 22 years of expected occupancy. Actual HECM tenure factors compound differently and are paid for as long as the home is your primary residence.

Combination (LOC + monthly)

$49,000 LOC + $364 / mo

Half net available as a growing LOC, half as monthly payments. Splits are flexible at application.

These are estimates based on simplified Principal Limit Factor approximations. Actual proceeds depend on the current HUD PLF table, the actual expected rate at application, lender-specific origination fees, and your complete financial picture. HUD-approved counseling is required before HECM application.

Want me to walk through this with you?

Optional. Your estimate is already shown above. If you would like me to run the numbers on your specific situation, talk through the tradeoffs, and point you to a HUD-approved counselor, send your contact info and I will reach out within one business day.

Reverse mortgages are loans. Borrowers must continue paying property taxes, homeowners insurance, HOA dues, and home maintenance, and must occupy the home as a primary residence. The loan balance grows over time as interest and fees accrue. As the balance grows, the equity available to you or your heirs may be significantly reduced. HUD-approved counseling is required before HECM application. This is general educational content, not a commitment to lend or an offer of credit. Not all applicants will qualify. Equal Housing Opportunity. Jennifer Kirby, NMLS# 2672337.

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