Reverse mortgage (HECM) explorer
A home equity conversion mortgage (HECM) lets homeowners 62 and older borrow against their home without monthly mortgage payments, as long as they live there and keep up taxes, insurance and upkeep. The amount available depends on age, rates and home value under HUD tables. This explorer uses a principal limit percentage you enter to show how the money could be paid out.
Educational estimate based on the numbers you enter and common rules of thumb. Not a loan offer, rate quote, approval or financial advice. A licensed loan officer can run your real numbers.
How this calculator works
This explorer starts with the principal limit, which is the home value times the principal limit share you enter. That share comes from HUD tables and depends on the youngest borrower's age and the expected rate, so ask a lender for your figure. The tool subtracts your current mortgage balance, which must be paid off, and your upfront costs. What remains is the amount available.
It then shows three ways to take that money. A lump sum is the whole amount. Monthly tenure payments spread the amount over the months until the youngest borrower turns 100, at the expected rate plus a built-in yearly mortgage insurance charge. The line of credit is the full amount today. If you leave it unused, it grows at that same combined rate, and the tool shows its size after 10 years. Enter the expected rate from your own quote; the field starts empty.
This is a simplified model. It does not apply HUD's cap on the home value used, the limits on how much you can draw in the first year, or HUD's actual tenure payment method. Interest and mortgage insurance on money you use are added to the loan balance over time, and this tool does not track that growing balance. If the youngest borrower is below the HECM minimum age, the tool says a HECM is not available yet.
When you apply, a lender orders an appraisal and uses HUD's tables to set your principal limit. HUD-approved counseling is required before you apply. The lender also reviews your credit and income to confirm you can keep paying property taxes, insurance and upkeep, and may set aside part of the money for those bills.
Related: Retirement projection calculator · FHA, VA and USDA loans · Which home loan is right for me?
Common questions
Do you still own your home with a reverse mortgage?
Yes. You keep title and must live in the home, pay property taxes and insurance, and maintain it. The loan is usually repaid when the last borrower moves out, sells or passes away.
Is this the amount I'd get?
No. Your actual principal limit comes from HUD tables based on the youngest borrower's age, the expected rate and the home's value, and HECM counseling is required before you apply. This tool shows how the payout options work.
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