Reverse Mortgage Calculator
A transparent, conservative sketch of an HECM-style principal limit and tenure monthly draw from home value, borrower age, and expected rate. Not a quote, not advice — click any i for detail.
HECM-style sketch inputs
Home value ($)
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Home value
Estimated appraised value. Official HECM math also caps at the FHA maximum claim amount. |
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Youngest borrower age
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Age
HECM eligibility generally starts at 62. Older ages unlock higher principal-limit factors in this sketch. |
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Expected rate (%)
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Expected rate
Stand-in for the expected interest rate used in principal-limit sizing. Higher rates reduce available proceeds in this model. |
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Existing mortgage payoff ($)
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Existing mortgage
Balance that must be paid off from proceeds at closing. |
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Upfront costs estimate (%)
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Upfront costs
Conservative stand-in for initial MIP + origination + closing costs as a percent of home value (not a fee quote). |
How to use this calculator
- Enter home value and youngest borrower’s age (62+).
- Set an expected rate — higher rates shrink the sketched principal limit.
- Subtract any mortgage that must be paid off and an upfront-cost percent.
- Read estimated principal limit, net proceeds, and a tenure monthly draw sketch.
Results explained
The headline is a conservative principal-limit sketch (home value × age/rate factor). The breakdown shows upfront-cost drag, mortgage payoff, net funds, and an illustrative tenure monthly draw that amortizes net proceeds over a remaining-life horizon at the expected rate. This is not an official HECM quote.
Quick reference: what this sketch includes
Transparent pieces — and what is left out.
| Item | Notes |
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| Principal limit factor | Interpolated conservative age table, reduced when rate rises |
| Upfront costs | Simple % of home value (MIP/fees stand-in) |
| Net proceeds | Principal limit − costs − existing mortgage |
| Tenure draw | Annuity-style monthly amount over (100 − age) years |
| Not included | LESA set-asides, lending limits, credit/property overlays |
HUD publishes official PLFs. Ours are intentionally lower / simpler for education only.
How the estimate is built
Base PLF rises with age (about 0.30 at 62 toward ~0.70 at 90 in this table). Adjusted PLF = base − 1.5 pts per 1% expected rate above 5%, floored. Principal limit = home value × adjusted PLF. Upfront = home value × cost%. Net = max(0, PL − upfront − mortgage). Tenure monthly ≈ PMT(net, expected rate, (100 − age) × 12 months).
Example scenario
A $400,000 home, age 70, 6.5% expected rate, $50,000 mortgage, and 3.5% upfront costs might sketch a principal limit in the mid–$100ks and a modest tenure draw after payoff and costs — exact HUD figures will differ.
FAQ
Is this an official HECM calculator?
No. It is an educational, conservative illustration. Official principal limits use HUD PLF tables, the maximum claim amount, and lender overlays.
Do I have to make monthly payments?
On a tenure reverse mortgage, the borrower typically receives payments (or a line of credit) rather than making amortizing payments — you still must pay taxes, insurance, and maintain the home.
Why is the estimate conservative?
We use a simplified PLF curve, a rate haircut, and a blunt upfront-cost percent so the result is less likely to overstate proceeds versus a real quote.
Is this financial advice?
No. Reverse mortgages have long-term tradeoffs for heirs and home equity. Talk with a HUD-approved counselor and a qualified professional before acting.