Reverse Mortgage Estimator (HECM)
Estimate your eligibility and cash proceeds
Enter Borrowing Details
Estimated Net Proceeds
HUD-Insured Program ∙ Non-Recourse Loan (You never owe more than the home value)
*Estimates include a calculated 2% Initial Mortgage Insurance Premium (IMIP) and ~$7,500 in estimated closing costs. Estimates based on 2025 lending limits ($1,149,825 max claim). Actual offers may vary.
Source: Calculations based on official HUD HECM Principal Limit Factors.
How a Reverse Mortgage Works
A Reverse Mortgage (HECM) allows homeowners age 62 and older to convert part of their home equity into cash. Unlike a traditional mortgage, you do not make monthly mortgage payments. Instead, the loan is repaid when you sell the home, move out permanently, or pass away.
No Monthly Payments
You preserve your monthly cash flow because you are not required to pay back the loan monthly as long as you live in the home.
Tax-Free Cash
Proceeds are generally tax-free and can be used for any purpose—medical bills, debt payoff, or living expenses.
Retain Ownership
You remain on the title and own your home. You simply must continue paying property taxes, insurance, and HOA fees.
Transparency: How We Calculate
Unlike lender websites that often hide their math behind lead forms, we use the standard Principal Limit Factor (PLF) tables provided directly by the U.S. Department of Housing and Urban Development (HUD).
Age Factor
We look up the PLF for the youngest borrower (Age 62+). Older borrowers receive a higher factor, meaning more cash access.
Lending Limit Cap
Home value is capped at the 2025 FHA limit of $1,149,825. Equity above this amount cannot be borrowed against.
The Mathematical Formula
*Note: This tool provides a gross estimate. Actual proceeds will be lower after deducting closing costs, origination fees, and mortgage insurance premiums (typically 2-6% of the home value).
Eligibility Requirements
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Age: You (or the youngest borrower) must be at least 62 years old.
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Equity: You generally need to own at least 50% of your home's equity.
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Residency: The home must be your primary residence.
Frequently Asked Questions
Do I lose ownership of my home?
No. You remain the owner of the home. The lender places a lien on the property, but you retain title as long as you meet loan obligations like paying taxes and insurance.
What happens if I outlive the loan proceeds?
You cannot be forced out of your home as long as you live in it and pay property charges, even if the loan balance exceeds the home value.
What happens to my heirs?
Your heirs can choose to repay the loan (usually 95% of the appraised value) to keep the home, or sell the home to repay the debt. If the home sells for more than the debt, they keep the difference.
What are the upfront costs and fees associated with a reverse mortgage?
Reverse mortgages typically include origination fees, upfront mortgage insurance premiums (MIP), appraisal fees, and standard closing costs. These can often be rolled into the loan balance so you do not pay them out of pocket, but they will reduce your available loan proceeds.
How can I receive the funds from a reverse mortgage?
You have several options: a single lump sum (subject to first-year limits), regular monthly payments (term or tenure), a line of credit that grows over time, or a combination of these methods.
What are the basic qualifications to get a reverse mortgage?
Generally, the youngest borrower must be at least 62 years old, own the property outright or have a small mortgage balance, occupy the home as a primary residence, and have the financial resources to pay ongoing property charges.
Will a reverse mortgage affect my Social Security or Medicare benefits?
No. Reverse mortgage proceeds are generally considered loan advances, not income, so they do not affect regular Social Security or Medicare benefits. However, needs-based programs like Medicaid or Supplemental Security Income (SSI) could be impacted if you retain the loan funds in your bank account past the month you receive them.