Reverse Mortgage Calculator
Estimate how much you could borrow against your home's equity with a reverse mortgage (HECM).
This is a simplified estimate. Reverse mortgages involve fees, interest that accrues over time, and reduce your home equity. By law, you must speak with a HUD-approved reverse mortgage counselor before obtaining one — consult a counselor and lender for exact figures.
What is a reverse mortgage?
A reverse mortgage, most commonly a Home Equity Conversion Mortgage (HECM) insured by the FHA, lets homeowners age 62 and older borrow against their home equity without making monthly mortgage payments. Instead of paying the lender each month, the loan balance grows over time as interest and fees accrue, and the loan becomes due when the last surviving borrower sells the home, moves out permanently, or passes away. The home itself secures the loan, and proceeds can be taken as a lump sum, a line of credit, monthly payments, or a combination.
How is the amount you can borrow determined?
The amount available, called the "principal limit," depends primarily on the age of the youngest borrower, the value of the home (up to program limits), and current interest rates. Older borrowers can generally access a higher percentage of their home's value because the loan is expected to be outstanding for a shorter period. This calculator uses an illustrative age-based table — roughly 40% of home value for ages 62-64, rising in steps up to about 60% for borrowers 80 and older — to approximate this relationship. If you have an existing mortgage, it must be paid off first, typically using the reverse mortgage proceeds themselves, with any remainder available to you.
Important considerations before getting a reverse mortgage
While a reverse mortgage can provide valuable income or a safety net for retirees who are house-rich but cash-poor, it comes with real costs: origination fees, mortgage insurance premiums, servicing fees, and accruing interest all reduce the equity left in your home over time, for you or your heirs. Because of the complexity and long-term impact, federal law requires anyone considering a reverse mortgage to complete counseling with a HUD-approved reverse mortgage counselor before applying, so treat the estimate above as a starting point for that conversation rather than a final number.
Frequently Asked Questions
What is the minimum age to get a reverse mortgage?
You must generally be 62 years or older to qualify for a HECM reverse mortgage. If you have a spouse who is younger, they may still be protected as a non-borrowing spouse under certain conditions, but the loan amount is based on the youngest borrower's age.
Do I have to make monthly payments on a reverse mortgage?
No, you don't make monthly mortgage payments. Instead, the loan balance grows over time as interest and fees accrue, and the full balance is repaid when the home is sold, you move out permanently, or you pass away.
How much money can I get from a reverse mortgage?
The amount, called the principal limit, depends on your age, your home's value, and current interest rates. Older borrowers and higher-value homes generally allow you to access a larger percentage of the home's value, roughly 40-60% for typical eligible ages.
Do I need to own my home outright to get a reverse mortgage?
No, but any existing mortgage balance must be paid off, usually using part of the reverse mortgage proceeds themselves. You'll receive whatever proceeds remain after that payoff.
What happens to a reverse mortgage when the borrower dies?
The loan becomes due. Heirs can typically repay the balance to keep the home (often by selling it or refinancing), or let the lender sell the home to satisfy the debt. Because reverse mortgages are non-recourse loans, heirs generally won't owe more than the home's value.
Is HUD counseling required before getting a reverse mortgage?
Yes, federal law requires anyone applying for a HECM reverse mortgage to complete counseling with a HUD-approved reverse mortgage counselor before the loan can proceed, to ensure you understand the costs, alternatives, and long-term impact.
What fees are involved in a reverse mortgage?
Reverse mortgages typically include an origination fee, upfront and ongoing mortgage insurance premiums, servicing fees, and closing costs, all of which reduce your net proceeds and accrue against your home equity over time.
Is a reverse mortgage a good idea?
It depends on your financial goals and how long you plan to stay in the home. It can provide valuable retirement income for homeowners who are house-rich but cash-poor, but it reduces the equity available to you or your heirs later, so it's worth comparing against alternatives like downsizing or a home equity loan with a HUD-approved counselor.