Reverse Mortgage Calculator
Estimate how much cash you can access through an HECM reverse mortgage based on age, home value, and current rates. For homeowners 62 and older.
⚠️ This is an estimate. Actual amounts depend on HUD loan limits, current interest rates, your specific situation, and HECM counseling outcomes. Always consult a HUD-approved HECM counselor before applying.
How much can you borrow by age?
| Age | % of home value | On $400K home | On $700K home |
|---|---|---|---|
| 62 | ~50% | $200,000 | $350,000 |
| 65 | ~55% | $220,000 | $385,000 |
| 70 | ~60% | $240,000 | $420,000 |
| 75 | ~67% | $268,000 | $469,000 |
| 80 | ~73% | $292,000 | $511,000 |
| 85+ | ~78% | $312,000 | $546,000 |
Approximations at 7.5% interest. Higher rates reduce these amounts. HUD HECM limits apply (max $1,209,750 in 2026).
FAQs
What is a reverse mortgage?
A reverse mortgage (officially HECM — Home Equity Conversion Mortgage) lets homeowners 62+ borrow against home equity without monthly mortgage payments. The loan balance grows over time and is repaid when you sell, move out, or pass away. The home itself is the collateral, and you keep the title and live there.
How much can I get from a reverse mortgage?
Depends on three factors: (1) Borrower's age (older = more), (2) Home value (more value = more loan), (3) Current interest rates (lower rates = more loan). Typical: 50-65% of home value at age 65, 60-75% at age 75. The 2026 HECM lending limit is $1,209,750 (federal max).
Do I have to pay back a reverse mortgage?
Not while you live in the home. The loan is repaid when: (1) You sell the home, (2) You move out permanently (over 12 months), (3) You pass away (heirs have 6-12 months to sell/refinance/pay), (4) You fail to pay property tax, insurance, or maintain the home. The home secures the loan.
Will my children inherit anything?
Yes — but only the equity remaining after the reverse mortgage is paid off. If your home value at sale exceeds the loan balance + interest accrued, the difference goes to heirs. If the loan balance exceeds the home's value, heirs owe nothing extra (HECM is non-recourse) — but they also inherit nothing from the home.
Is a reverse mortgage a good idea?
Sometimes. Good for: retirees with significant home equity, low cash flow, no plans to leave home, willing to give up legacy in home. Bad for: those who plan to move within 5 years, want to leave the home to heirs, can solve cash flow via HELOC or downsizing. Reverse mortgages have high fees (5-7% of loan amount upfront) and accrue interest faster than people expect.
What's the difference between lump sum, monthly, and line of credit?
Three payout options. Lump sum: take all available cash at once (uses up the borrowing power immediately). Tenure: monthly payments for as long as you live in the home. Term: monthly payments for fixed years. Line of credit: borrow as needed, like a HELOC, with growing unused credit limit (LOC option often best for flexibility).
What are reverse mortgage fees?
Upfront costs: 2% mortgage insurance premium (MIP) on loan amount, lender origination fee (capped at $6,000), counseling fee ($125-$200), appraisal ($500-$700), title fees ($1,000-$3,000). Total upfront: typically 5-7% of loan amount. Ongoing: 0.5% annual MIP on loan balance + accrued interest.