Reverse Mortgage Calculator

Ballpark Estimate of Available Proceeds

Your Details

Youngest Borrower's Age

HECM reverse mortgages require the youngest borrower to be 62+.

Home Value ($)

Existing Mortgage Balance ($)

Must be paid off first from the proceeds.

Expected Interest Rate (%)

Estimated Closing Costs (%)

Estimated Net Proceeds

Enter your details to see a rough estimate.

This is a simplified educational estimate, not a lender quote. Actual HECM principal limits use HUD's official actuarial tables, which this calculator approximates. Contact a HUD-approved lender or counselor for exact figures.

Validation Error

Borrower must be at least 62, and home value must be greater than zero.

Understanding Reverse Mortgages

A reverse mortgage (most commonly a HECM -- Home Equity Conversion Mortgage) lets homeowners 62 and older convert part of their home equity into cash, without monthly mortgage payments. The loan balance grows over time and is repaid when the borrower sells, moves out, or passes away.

Age Increases Access

Older borrowers can typically access a larger percentage of their home's value, since the loan is expected to be outstanding for fewer years.

Interest Rate Matters a Lot

Higher expected interest rates reduce how much you can borrow, since the lender needs more of the home's future value to cover a faster-growing balance.

Existing Mortgage Must Be Paid Off

Any current mortgage balance is paid off first from the reverse mortgage proceeds -- what's left over is available to you.

Simplified, Not Official

Actual HECM proceeds are set by HUD's official Principal Limit Factor tables, which vary precisely by exact age and rate. This calculator uses a simplified approximation to illustrate the mechanics -- always confirm real figures with a HUD-approved lender.

Worked Example

Suppose the youngest borrower is 72, the home is worth $400,000, there's a $50,000 existing mortgage, the expected rate is 6%, and closing costs are estimated at 2%:

Estimated principal limit factor: ≈ 53% of home value.
Principal limit: $400,000 × 53% = $212,000.
Less mortgage payoff & closing costs: $50,000 + $8,000 = $58,000.
Estimated net proceeds: $212,000 − $58,000 = $154,000.

Summary

Principal Limit: $212,000
Deductions: $58,000
Net Proceeds: $154,000

Key Takeaways

No Monthly Payments Required: The loan is repaid from the home's sale, not from monthly bills -- but property taxes, insurance, and upkeep are still the borrower's responsibility.
Balance Grows Over Time: Unpaid interest and fees are added to the loan balance each period, reducing the equity left for heirs.
Get an Official Quote: HUD requires independent counseling before a HECM closes -- use that session to get exact numbers.