Reverse Mortgage Calculator
Estimate your HECM reverse mortgage proceeds
Important: Consult a HUD-Approved Counselor
Before proceeding with a reverse mortgage, federal law requires you to meet with a HUD-approved housing counselor. This calculator provides estimates only. Call 1-800-569-4287 to find a counselor near you.
Your Information
FHA HECM limit 2024: $1,149,825
Must be paid off from reverse mortgage proceeds
Typically $5,000–$10,000 for HECM
The Principal Limit Factor (PLF) is determined by your age and the expected interest rate. Older borrowers receive a higher percentage of their home's value.
Available Proceeds
$164,500
After paying off existing mortgage & costs
Payout Options
Lump Sum
Up to 60% in first year
$132,300
Monthly Tenure
Fixed monthly payments for life
$685/mo
Line of Credit
Draw as needed, grows over time
$164,500
- Home Value
- $450,000
- Max Claim Amount
- $450,000
- Principal Limit Factor
- 49.0%
- Principal Limit
- $220,500
- Existing Mortgage
- −$50,000
- Closing Costs
- −$6,000
Ready to apply?
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How Does a Reverse Mortgage Work?
A reverse mortgage lets homeowners 62+ tap their home equity without selling or making monthly mortgage payments. The loan is repaid when you move, sell, or pass away.
Key facts:
- No monthly mortgage payments required
- You retain title to your home
- Loan balance grows over time as interest accrues
- You must continue paying property taxes and insurance
- FHA HECM limit (2024): $1,149,825
- HUD counseling is required before closing
Reverse Mortgage Eligibility Requirements
Age 62 or older
Both borrowers on title must be 62+.
Primary residence
Must be your primary home. No investment properties.
Significant equity
Typically 50%+ equity, depending on age.
HUD counseling
Must complete approved counseling session first.
Current on obligations
No delinquent federal debt (taxes, student loans).
Property condition
Home must meet FHA minimum property standards.
HECM vs. Proprietary Reverse Mortgage
| Feature | HECM | Proprietary |
|---|---|---|
| FHA Insured | Yes | No |
| Loan Limit | $1,149,825 | No limit |
| Min Age | 62 | 55–62 (varies) |
| Counseling Required | Yes | Varies |
| Consumer Protections | Strong | Varies by lender |
| Best For | Most homeowners | High-value homes |