Reverse Mortgage Calculator
Estimate how much you could receive from a Home Equity Conversion Mortgage (HECM) – the most common reverse mortgage.
- You must be 62 or older and own your home outright (or have low remaining mortgage) to qualify for a reverse mortgage
- A reverse mortgage lets you convert home equity into cash with no monthly payment required – the loan is repaid when you sell or move out
- HECM loan limits: $1,209,750 in 2026 (FHA insured reverse mortgage maximum)
- Interest accrues monthly and reduces the equity your heirs will inherit
- Required: HUD-approved reverse mortgage counseling before closing – costs ~$125
Your Home & Personal Details
Must be 62+ to qualify for HECM
Current appraised or market value
Amount still owed on home (enter 0 if paid off)
Affects the PLF (Principal Limit Factor)
Estimated Reverse Mortgage Proceeds
Types of Reverse Mortgages
HECM (Home Equity Conversion Mortgage)
The most common type. Insured by FHA, available through HUD-approved lenders. Requires HUD counseling. Maximum loan: $1,149,825 (2024). Available as lump sum, monthly payments, or line of credit.
HECM for Purchase
Lets you buy a new primary home using a reverse mortgage – combining the HECM with a down payment to purchase a home without monthly mortgage payments. Good for downsizing to a better-suited home.
Proprietary Reverse Mortgage
Private loans for high-value homes that exceed the FHA limit. Not government-insured, so terms vary widely by lender. May be called a “jumbo reverse mortgage.”
Single-Purpose Reverse Mortgage
Offered by state/local governments and nonprofits for a specific purpose (home repairs, property taxes). Lowest cost option, but very limited availability and restricted use.
What Is a Reverse Mortgage?
A reverse mortgage is a home loan available to homeowners age 62 and older that lets them convert part of their home equity into cash – without making monthly mortgage payments. Instead of you paying the lender, the lender pays you. The loan balance grows over time as interest accrues, and the loan becomes due when you sell the home, move out permanently, or pass away.
The most common type is the HECM (Home Equity Conversion Mortgage), which is insured by the Federal Housing Administration (FHA) and regulated by HUD. In 2024, the FHA HECM loan limit is $1,149,825 – meaning even if your home is worth more, only this amount is used in the calculation.
To qualify, you must be at least 62 years old, live in the home as your primary residence, and have significant home equity. You must also complete a required HUD counseling session with an independent, HUD-approved counselor – which helps ensure you understand the terms, costs, and alternatives before committing.
How Much Can You Get from a Reverse Mortgage?
The amount you can borrow depends on three main factors: your age (or the age of the youngest borrower if married), your home’s appraised value (up to the FHA lending limit), and current interest rates. HUD publishes official Principal Limit Factors (PLFs) – percentage tables that determine how much of your home’s value you can access.
As a general guideline: at age 62 with moderate interest rates, you might access roughly 40–50% of your home’s value. At 75, that rises to around 55–60%. At 80+, it can reach 65–70%+. Higher interest rates reduce these percentages since the lender is projecting more interest accumulation over the loan’s life.
From that gross amount, you’ll typically subtract any existing mortgage balance (which must be paid off at closing), FHA mortgage insurance premiums (2% upfront + 0.5% annual), origination fees, and other closing costs – which often total $10,000–$20,000 and can typically be rolled into the loan.
Pros and Cons of Reverse Mortgages
Pros: No monthly mortgage payments required; proceeds are generally tax-free; you remain the homeowner; the loan is non-recourse (you’ll never owe more than the home’s value); FHA insurance protects you if the lender fails; flexible disbursement options (lump sum, monthly, line of credit); line of credit grows over time.
Cons: High upfront costs; loan balance grows (reducing inheritance for heirs); must maintain the home and pay taxes, insurance, and HOA fees or risk default; can affect Medicaid eligibility; may not leave much equity for heirs. A reverse mortgage is not right for everyone – especially those who want to leave home equity to their children.
If you’re still paying a traditional mortgage, see our mortgage payoff calculator or explore our main mortgage calculator to understand your remaining balance and equity position.
Frequently Asked Questions – Reverse Mortgage Calculator
How old do you have to be to get a reverse mortgage?
You must be at least 62 years old to qualify for a HECM (Home Equity Conversion Mortgage) reverse mortgage. If you have a spouse, the youngest borrower must be 62. Non-borrowing spouses under 62 have certain protections under HUD rules – they can remain in the home after the borrowing spouse passes – but they cannot receive additional proceeds.
Do you make monthly payments on a reverse mortgage?
No – that’s the defining feature of a reverse mortgage. You do not make monthly principal and interest payments. The loan balance grows over time as interest accrues. However, you must continue to pay property taxes, homeowner’s insurance, and HOA fees (if applicable), and maintain the home in good condition. Failure to pay taxes or insurance can trigger a default and foreclosure.
Is a reverse mortgage income taxable?
No. Reverse mortgage proceeds are not considered income by the IRS – they’re a loan advance against your home equity. This means they won’t affect your Social Security or Medicare benefits. However, if you receive Medicaid, reverse mortgage proceeds could potentially affect your eligibility if the cash sits in your bank account. Consult a financial advisor about your specific situation.
What happens to a reverse mortgage when you die?
When you pass away (or permanently move out), the loan becomes due. Your heirs have several options: (1) sell the home and use the proceeds to pay off the reverse mortgage, keeping any remaining equity; (2) refinance the balance with a traditional mortgage and keep the home; or (3) walk away – since HECM loans are non-recourse, heirs never owe more than the home’s value, even if the loan balance exceeds it. Heirs typically have 6–12 months to resolve the loan.
Can you lose your home with a reverse mortgage?
Yes, it’s possible – but only if you fail to meet the loan obligations: paying property taxes, homeowner’s insurance, and maintaining the property. Failing any of these can trigger a default and eventually foreclosure. This is why HUD requires a financial assessment before approving a HECM loan – to ensure you have the financial capacity to meet these ongoing obligations.
What are the costs of a reverse mortgage?
HECM reverse mortgages have several costs: FHA Mortgage Insurance Premium (2% upfront + 0.5% annually on the outstanding balance), origination fee (up to $6,000, regulated by FHA), third-party closing costs (appraisal, title, attorney fees – typically $2,000–$4,000), and servicing fees (up to $35/month). Most of these can be financed into the loan so you pay little or nothing out-of-pocket at closing.
Is a reverse mortgage a good idea?
A reverse mortgage can be a good financial tool for the right person – specifically, homeowners who are house-rich but cash-poor, plan to stay in the home long-term, have no heirs who expect to inherit the home, and need to supplement retirement income. It’s generally not a good choice if you want to leave the home to your children, if you plan to move within 5 years (fees make short-term use expensive), or if a home equity loan or line of credit (HELOC) would serve the same purpose at lower cost.
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