Reverse Mortgage Estimator (HECM)
Estimate the equity available from a HECM reverse mortgage from home value, age-based principal limit factor, existing mortgage, and costs. Educational, not financial advice.
2025 max claim amount $1,209,750. Verify current.
From HUD tables — rises with age, falls as rates rise. ~0.40 at 62, ~0.55 at 75.
Must be paid off first.
Origination, mortgage insurance, closing.
A HECM reverse mortgage’s principal limit = the lesser of home value or the HECM limit, times a principal limit factor (PLF) set by HUD that rises with the youngest borrower’s age and falls as the expected interest rate rises. Any existing mortgage must be paid off from the proceeds, and upfront costs (origination, FHA mortgage insurance, closing) reduce what’s left. The PLF here is an editable estimate — get your exact figure from a HUD-approved lender. Interest accrues on the balance over time, reducing remaining equity. Borrowers must keep paying taxes, insurance, and upkeep. Not financial advice — consult a HUD-approved counselor. Everything runs in your browser.
About this tool
A reverse mortgage lets homeowners aged 62 and older convert part of their home equity into cash without selling or making monthly mortgage payments; the loan is repaid when the borrower sells, moves out permanently, or passes away. The most common type is the federally insured Home Equity Conversion Mortgage (HECM). This estimator approximates how much you could access. The starting point is the lesser of your home's appraised value or the HECM lending limit (the maximum claim amount, $1,209,750 in 2025). That figure is multiplied by a principal limit factor (PLF) — a percentage set by HUD that determines how much of the value you can borrow. The PLF rises with the age of the youngest borrower (older borrowers qualify for more, since the loan is expected to be outstanding for less time) and falls as the expected interest rate rises; as rough guidance, it runs around 40% at age 62 and climbs toward 55% or more by the mid-seventies. From the resulting principal limit, any existing mortgage must be paid off first (a requirement of the program), and substantial upfront costs — loan origination fees, the FHA mortgage insurance premium, and closing costs — come out as well, leaving the net amount available to you as a lump sum, line of credit, or monthly payments. Because the exact PLF comes from detailed HUD tables tied to current rates, it is an editable input here; get your precise figure from a HUD-approved lender. The crucial caveats: interest accrues on the rising loan balance over time, steadily reducing the equity left for you or your heirs; you must continue paying property taxes, homeowners insurance, and maintenance or risk default; and reverse mortgages carry high costs that make them suitable only in specific situations. HUD requires independent counseling before you can take one out. This is educational and not financial advice — consult a HUD-approved counselor. Everything runs in your browser; nothing is uploaded.
How to use it
- Enter your home's value and the HECM lending limit (verify the current year's figure).
- Enter the principal limit factor (PLF) — get it from a lender; it rises with age and falls as rates rise.
- Enter any existing mortgage balance (it must be paid off from proceeds).
- Enter estimated upfront costs.
- Read the estimated equity available to you after payoff and costs.
Frequently asked questions
- How much can I get from a reverse mortgage?
- Roughly the lesser of your home value or the HECM limit, times a principal limit factor (PLF) based on age and rates, minus any existing mortgage and upfront costs. The PLF runs from about 40% at age 62 to 55%+ by the mid-70s.
- What is the principal limit factor (PLF)?
- A percentage set by HUD that determines how much of your home value you can borrow. It increases with the youngest borrower's age and decreases as the expected interest rate rises. Exact PLFs come from HUD tables — confirm yours with a lender.
- Do I have to pay off my existing mortgage?
- Yes. A reverse mortgage must be in first lien position, so any existing mortgage is paid off from the proceeds first. This reduces the cash available to you, which the estimator reflects.
- Does the loan reduce what my heirs inherit?
- Yes. Interest accrues on the growing loan balance over time, steadily reducing the home equity remaining for you or your heirs. The loan is repaid (typically by selling the home) when you move out permanently or pass away.
- What are the ongoing obligations?
- You must continue to pay property taxes, homeowners insurance, and maintain the home. Failing to do so can trigger default and foreclosure even though there is no monthly mortgage payment.
- Is this financial advice?
- No. It is an educational estimate; actual figures depend on HUD tables, current rates, and an appraisal. HUD requires independent counseling before a HECM — consult a HUD-approved counselor. Nothing is uploaded.