Reverse Mortgage Calculator

Appraised market value.

Must be 62+ for HECM.

Payout Option

Reverse Mortgage Calculator: HECM Payout & Costs

Our Reverse Mortgage Calculator estimates HECM payouts: lump sum, monthly income, or line of credit. See eligibility, fees, and equity impact.

What is a Reverse Mortgage?

A loan for homeowners 62+ that converts home equity into cash. No monthly payments — balance grows over time, repaid when home is sold.

Eligibility

  • Age 62+
  • Own home outright or low mortgage
  • Primary residence
  • Financial assessment
  • Counseling required

Payout Options

  • Lump Sum: Max at closing
  • Monthly: Fixed income for life or term
  • Line of Credit: Draw as needed
  • Combo: Monthly + credit line

Principal Limit Factors

  • Youngest borrower age
  • Home value (FHA max $1,149,825 in 2025)
  • Interest rate
  • Upfront costs

Costs & Fees

FeeAmount
MIP (Initial)2% of home value
MIP (Annual)0.5% of balance
Origination$2,500–$6,000
Closing Costs$2,000–$5,000

Example: $500K Home, Age 70, 6.5%

  • Lump Sum: ~$285,000
  • Monthly (Life): ~$1,600
  • Line of Credit: ~$290,000
  • Net after fees: ~$270,000

Risks

  • Reduces inheritance
  • Balance grows over time
  • Must maintain home & taxes
  • Non-borrower spouse protection

Alternatives

  • Downsize
  • Home Equity Loan
  • Cash-out Refinance
  • Government assistance

Pro Tips

  • Get HUD counseling
  • Compare multiple lenders
  • Preserve line of credit growth
  • Plan for long-term care

Conclusion

Reverse mortgages offer flexibility for seniors. Use our Reverse Mortgage Calculator to plan wisely. Explore more in Finance Calculators.