Estimate how much you could get from a Home Equity Conversion Mortgage (HECM). Enter your home value, the youngest borrower's age and the expected rate to see the principal limit, upfront costs, what is left after paying off your current mortgage, and how the loan balance and credit line could grow.
Last updated:
Home and borrower
$
years
Or of an eligible non-borrowing spouse, if younger.
$
0 if the home is paid off.
%
10-year Treasury/CMT rate + lender margin.
Costs and limits
$
Appraisal, title, recording, counseling, etc.
$
2026 HECM limit; update if it changes.
e.g. 0.412. Leave blank to use the estimate.
%
Used for the projection only.
Enter your values to see the result.
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How to use the Reverse Mortgage Calculator
Enter your home value and the age of the youngest borrower (62 or older).
Enter any mortgage you still owe; it has to be paid off at closing.
Set the expected interest rate and your estimated closing costs.
Optionally enter the PLF from a lender quote for an exact principal limit.
Read the available proceeds, the first-year limit and the long-term projection.
How HECM proceeds are calculated
Maximum claim amount (MCA) = the lesser of the appraised value and the FHA limit ($1,249,125 in 2026).
Principal limit = MCA × principal limit factor (PLF) for the youngest borrower's age and the expected rate.
Upfront costs = 2% initial MIP on the MCA + origination fee + third-party closing costs.
Net proceeds = principal limit − existing mortgage payoff − financed costs.
The expected rate is the 10-year Treasury (or CMT) rate plus the lender's margin, with a floor of 3%. The loan then grows at the note rate plus 0.5% annual MIP, and so does any unused line of credit.
About the PLF estimate: this page approximates HUD's table with PLF ≈ (1 + expected rate + 0.5%)−0.44 × (100 − age), capped at 0.75. It follows the official table's direction (higher with age, lower with rates) but is not the official figure. For a precise number, enter the PLF from a lender's quote.
Origination fee limit
Home value (MCA)
Max origination fee
Up to $125,000
$2,500 (minimum allowed)
$200,000
$4,000
$300,000
$5,000
$400,000 and up
$6,000 (cap)
Before you apply
Counseling is required: every HECM borrower must meet with a HUD-approved counselor before applying.
Compare payout options: lump sum (fixed rate), monthly tenure or term payments, or a line of credit that grows over time.
Budget for taxes, insurance and repairs, which remain your responsibility.
Talk with heirs: the loan is repaid when the last borrower leaves the home, usually by selling it.
For a HECM, the amount is the principal limit: the lesser of your home value and the FHA lending limit, multiplied by a principal limit factor (PLF) from HUD's table. The PLF rises with the youngest borrower's age and falls as the expected interest rate rises. Your existing mortgage and upfront costs are subtracted to get the cash you can actually use.
What is a principal limit factor?
It is the share of the home's value (up to the FHA limit) you can borrow. HUD publishes PLF tables by age of the youngest borrower and expected rate. Younger borrowers and higher rates get lower factors. This calculator estimates the PLF with a smooth approximation; ask a lender for the exact factor and enter it to get a precise figure.
What are the costs of a HECM?
The main costs are the initial mortgage insurance premium of 2% of the maximum claim amount, an origination fee capped by HUD at 2% of the first $200,000 plus 1% above that (minimum $2,500, maximum $6,000), normal closing costs, and an annual MIP of 0.5% of the balance that is added to the loan.
What is the HECM lending limit for 2026?
The FHA maximum claim amount for HECMs is $1,249,125 for 2026. Homes worth more are treated as if they were worth that amount, unless you use a private (proprietary) reverse mortgage.
Why can I only take 60% in the first year?
HUD limits first-year draws to 60% of the principal limit, or to your mandatory obligations (such as paying off the current mortgage and closing costs) plus 10% of the principal limit if that is more. The rest becomes available after 12 months.
Do I still have to pay property taxes and insurance?
Yes. You keep title to the home and must pay property taxes, homeowners insurance and upkeep, and live in it as your main home. Falling behind can make the loan due. No monthly mortgage payment is required.
Can I owe more than my home is worth?
A HECM is non-recourse: when the loan is repaid, you or your heirs never owe more than the home's value (or 95% of the appraised value if heirs keep the home). The growing loan balance does reduce the equity left for heirs.
Are all the tools on FreeToolCabin tested for quality and accuracy?
Yes! Every tool on our site undergoes automated Q/A testing in real browser environments to ensure high precision, correct output, and zero errors. If you happen to spot a bug or have a suggestion, please contact us at [email protected] and our team will review it right away.