Reverse Mortgage Calculator
Calculate HECM reverse mortgage loan amounts, monthly payments, and line of credit with 2026 limits ($1,209,750). Compare lump sum, tenure, and LOC payment options.
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Estimated Maximum Loan Amount
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Net Proceeds After Upfront Costs —
Extended More scenarios, charts & detailed breakdown ▾
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Maximum HECM Loan Amount
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Required Mortgage Payoff —
Net Cash to Borrower —
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Professional Full parameters & maximum detail ▾
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Loan Sizing
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Maximum HECM Loan —
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Upfront Costs
Upfront MIP (2% of home value) —
Origination Fee —
Long-Term Equity Projection
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How to Use This Calculator
- Enter your home value and borrower age (62+ required; older = higher loan amount).
- Enter the current interest rate (higher rate = lower principal limit).
- Select a payment plan: lump sum, monthly tenure, or line of credit.
- Use tabs to model each plan in detail and see upfront costs.
- Use Professional to project the loan balance and remaining equity over your expected time in the home.
Formula
Max Loan = min(Home Value, $1,209,750) × Principal Limit Factor
PLF (approx) = 40% + (Age − 62) × 0.3% (simplified; actual table varies with interest rate)
Monthly Tenure Payment = Available Proceeds × r / (1 − (1+r)^−n)
Example
Age 72, $400,000 home, 6.5% rate. PLF ≈ 43%. Max loan ≈ $172,000. Less 2% MIP ($8,000) + origination ($6,000) = net proceeds ~$158,000. Tenure payment over 276 months (23 yrs, life expectancy from age 72): ~$1,050/month.
Frequently Asked Questions
- The maximum loan amount depends on your age, home value (capped at the 2026 HECM limit of $1,209,750), and current interest rates. The principal limit factor (PLF) ranges from roughly 52% at age 62 to about 67-70% at age 80+. A 72-year-old with a $400,000 home might qualify for roughly $160,000-$180,000.
- Upfront costs include: (1) Upfront MIP of 2% of home value (goes to FHA insurance fund), (2) Origination fee up to $6,000, (3) Third-party closing costs (appraisal, title, etc.) typically $2,000-$5,000, and (4) required HUD-approved counseling fee (~$125). These can often be financed into the loan.
- A HECM reverse mortgage is due when the last surviving borrower (1) dies, (2) sells the home, (3) vacates the home for more than 12 consecutive months, or (4) fails to maintain the home, pay property taxes, or keep homeowners insurance.
- Unlike a traditional home equity line of credit (HELOC), the unused portion of a HECM line of credit grows over time at the loan interest rate. This is a unique feature: the longer you wait to use the credit, the more you can access. This makes the LOC strategy popular for long-term financial planning.
- No. Reverse mortgage proceeds are loan advances, not income, so they are not subject to federal or state income tax. They also do not affect Social Security or Medicare eligibility. However, they may affect Medicaid eligibility if funds are not spent in the same month received.
Related Calculators
Sources & References (5) ▾
- HUD — HECM Reverse Mortgage Program — U.S. Department of Housing and Urban Development
- FHA Mortgagee Letter — 2026 HECM Loan Limits — Federal Housing Administration
- NRMLA — Reverse Mortgage Basics — National Reverse Mortgage Lenders Association
- CFPB — Reverse Mortgages Guide — Consumer Financial Protection Bureau
- AARP — Reverse Mortgage 101 — AARP