SlickCalc

Reverse Mortgage Calculator

Estimate your HECM reverse mortgage proceeds, fees, and payment options based on your age, home value, and interest rate.

Borrower & Property

Minimum age is 62 (FHA requirement)

Rate & Term Settings

Used for the fixed-term monthly payment option

Estimated Results

Net Available Funds

$179,316

PLF: 0.485  |  Principal Limit: $194,200

Upfront Costs Breakdown

FHA Upfront MIP (2%)$8,000
Origination Fee$3,884
Other Closing Costs$3,000
Total Upfront Costs$14,884

Payment Options

Lump Sum

$179,316

Tenure (Lifetime)

$1,075/mo

Term (10yr)

$1,991/mo

Credit Line Growth Rate: 6.00%/yr

20-Year Balance Projection

Assumes lump-sum draw. Loan balance grows as interest and MIP accrue over time.

YearAgeLoan BalanceHome ValueRemaining Equity
Now70$194,200$400,000$205,800
Y171$206,178$412,000$205,822
Y575$261,947$463,710$201,763
Y1080$353,327$537,567$184,240
Y1585$476,585$623,187$146,602
Y2090$642,842$722,444$79,603
Calculation Steps

Max Claim Amount = min($400,000, $1,249,125) = $400,000

PLF (70 yrs, 5.5%) = 0.485

Principal Limit = $400,000 × 0.485 = $194,200

Upfront Costs = MIP $8,000 + Orig $3,884 + Other $3,000 = $14,884

Net Available = $194,200 − $14,884 − $0 = $179,316

How a Reverse Mortgage Works

A reverse mortgage (officially called a Home Equity Conversion Mortgage, or HECM) is an FHA-insured loan that allows homeowners aged 62 or older to convert a portion of their home equity into cash — without making monthly mortgage payments. The loan becomes due when you sell, move out, or pass away. Use our home equity calculator to first understand how much equity you have built up.

The amount you can borrow is determined by three factors: your age (older = higher payout), your home's appraised value (capped at the 2026 FHA limit of $1,249,125), and the current expected interest rate. The Principal Limit Factor (PLF) — published by HUD — translates these inputs into a borrowing limit. Generally, a higher age and lower interest rate result in a larger principal limit.

You can receive funds as a lump sum, as monthly payments for life (tenure), as monthly payments for a fixed term, as a growing line of credit, or as any combination of these. The credit line option is unique: unused credit grows at the same rate as the loan's interest, meaning your available funds can increase over time.

Upfront costs include a 2% FHA Mortgage Insurance Premium (MIP) based on the maximum claim amount, an origination fee between $2,500 and $6,000, and other closing costs (appraisal, title, etc.). The annual MIP of 0.5% is added to the loan balance each year. For comparison, explore how a traditional mortgage calculator works before deciding which path fits your retirement.

You retain ownership of your home throughout the life of the loan. You are still responsible for property taxes, homeowner's insurance, and maintenance. If these obligations are not met, the lender may call the loan due. The loan balance grows over time as interest and MIP accrue, which will reduce the equity left for heirs — but can never exceed the value of the home (HECM is a non-recourse loan).

Frequently Asked Questions

What is a reverse mortgage?
A reverse mortgage (HECM) is an FHA-insured loan that lets homeowners 62 and older tap their home equity without monthly mortgage payments. Instead of you paying the lender, the lender pays you. The loan balance grows over time and is repaid — typically from the home sale — when you move, sell, or pass away.
How much can I get from a reverse mortgage?
The amount depends on your age, home value (up to the 2026 FHA limit of $1,249,125), and the current expected interest rate. As a rough guide, a 70-year-old at a 5.5% rate can typically access around 47–53% of their home value. Use this calculator to get a personalized estimate based on your situation.
What are the fees and costs?
Key upfront costs include: (1) FHA Mortgage Insurance Premium — 2% of the maximum claim amount; (2) Origination Fee — the greater of $2,500 or 2% of the first $200,000 of home value, capped at $6,000; (3) Other closing costs (appraisal, title, recording) — typically $2,000–$4,000. Ongoing costs include a 0.5% annual MIP added to the loan balance each year.
Do I still own my home with a reverse mortgage?
Yes. You retain title and ownership of your home throughout the loan. However, you must continue to pay property taxes, homeowner's insurance, and maintain the property. Failure to meet these obligations can trigger a default and loan payoff demand.
What happens when I move out or pass away?
The loan becomes due and payable. Your heirs can sell the home to repay the balance, pay off the loan and keep the home, or simply walk away — since HECM is a non-recourse loan, the lender can only collect from the home's sale proceeds and cannot pursue other assets. Heirs typically have up to 12 months to settle the loan.
What is the minimum age for a reverse mortgage?
The FHA requires all borrowers on a HECM to be at least 62 years old. If you have a co-borrower or non-borrowing spouse, their age also affects the calculation. Younger borrowers receive a smaller payout because the loan is expected to last longer. There is no maximum age limit.

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