01
Enter Home Information
Add the home value, youngest borrower age, maximum claim amount and existing mortgage payoff.
Real Estate and Lending
Reverse Mortgage Calculator
Estimate a reverse mortgage principal limit, existing mortgage payoff, initial proceeds, monthly advances, accumulated loan balance, future home value and remaining homeowner equity.
HECM-style planning
Proceeds and advance estimate
Balance and equity projection
Reverse Mortgage Details
Enter the property, borrower, loan-cost and planned-advance assumptions.
Reverse Mortgage Estimate
Review estimated available proceeds, growing balance and projected homeowner equity.
Estimated net proceeds available
$0.00
After mortgage payoff and estimated closing costs
Projected loan balance
$0.00
At the end of the selected period
Projected remaining equity
$0.00
After estimated selling costs
Eligible property value
$0.00
Estimated principal limit
$0.00
Existing mortgage payoff
$0.00
Upfront mortgage insurance
$0.00
Origination and closing costs
$0.00
Cash needed to close
$0.00
Initial cash advance
$0.00
Total monthly advances
$0.00
Total cash received
$0.00
Unused estimated proceeds
$0.00
Initial loan balance
$0.00
Total accrued interest
$0.00
Total annual MIP accrued
$0.00
Total servicing fees
$0.00
Projected home value
$0.00
Projected loan-to-value
0.00%
Monthly property obligations
$0.00
Potential non-recourse shortfall
$0.00
Total estimated loan costs
$0.00
Maximum level monthly advance
$0.00
The entered assumptions produce estimated available
reverse mortgage proceeds.
This is a simplified planning estimate, not an
official HECM calculation or loan offer. Principal
limits, first-year disbursement limits, set-asides,
credit-line growth and lender costs may differ.
Home Equity Financing
What Is a Reverse Mortgage?
A reverse mortgage allows an eligible homeowner to borrow against part of the equity accumulated in a principal residence.
A reverse mortgage is a loan secured by a home. Instead of making regular principal and interest payments, eligible borrowers may receive funds from the lender while interest and applicable charges are added to the outstanding balance.
The borrower continues to own the home but remains responsible for property taxes, homeowners insurance, maintenance and other required property charges.
The loan generally becomes due after the home is sold, the final borrower dies, or the property is no longer maintained as the required principal residence, subject to applicable program protections and loan terms.
How It Works
How to Use the Reverse Mortgage Calculator
Create a simplified proceeds and equity projection in four straightforward steps.
02
Enter the Principal Limit
Use the principal-limit factor provided by a lender or enter a planning assumption.
03
Add Costs and Advances
Enter insurance, origination costs, initial proceeds and planned monthly advances.
04
Review Future Equity
Compare the projected balance with the estimated future home value and remaining net equity.
Important Measurements
Key Reverse Mortgage Figures
These measurements help explain proceeds, borrowing costs and the potential effect on future home equity.
Principal Limit
The estimated maximum amount available before subtracting mortgage payoffs, insurance and closing costs.
Net Available Proceeds
The estimated principal limit remaining after mandatory obligations and financed loan costs.
Growing Loan Balance
The projected amount owed after advances, interest, insurance and servicing charges are added.
Remaining Home Equity
The projected home value remaining after selling costs and repayment of the estimated loan balance.
Long-Term Projection
Reverse Mortgage Balance and Equity Preview
Review how planned advances and accumulating loan charges may affect the balance and estimated home equity.
| Year | Cumulative Cash Advances | Annual Interest & MIP | Loan Balance | Projected Home Value | Estimated Net Equity | Projected LTV |
|---|
Frequently Asked Questions
Reverse Mortgage Calculator FAQs
Helpful answers about HECM eligibility, proceeds, loan balances, property obligations and repayment.
This calculator multiplies the eligible property value
by the entered principal-limit factor. It then subtracts
the existing mortgage payoff, upfront insurance and
closing costs to estimate available proceeds.
The principal-limit factor represents the percentage of
eligible property value used to estimate the initial
principal limit. Official HECM factors depend on
program rules, age and interest-rate assumptions.
Reverse mortgages generally do not require scheduled
monthly principal and interest payments. Borrowers may
usually make voluntary repayments, and must continue
meeting property-related obligations.
Cash advances, interest, mortgage insurance and
applicable servicing charges are added to the loan
balance instead of being paid through regular monthly
mortgage payments.
An existing mortgage generally must be satisfied when
the reverse mortgage closes. It may be paid from the
reverse mortgage proceeds or with additional borrower
funds when necessary.
Yes. The homeowner remains responsible for property
taxes, homeowners insurance, maintenance and other
required property charges.
For an eligible non-recourse reverse mortgage, repayment
is generally limited by the applicable value or sale
proceeds of the secured home, subject to program and
loan requirements.
No. It is an educational planning tool. Official
proceeds require a lender’s calculation using current
HUD factors, appraisal information, borrower details,
interest rates, set-asides and disbursement rules.
Important: This reverse mortgage
calculator is provided for general informational and
planning purposes only. It does not constitute a loan
offer, approval, appraisal, HECM calculation, financial
advice, legal advice, tax advice or housing counselling.