Preparing your estimate…
Reverse Mortgage Estimate
Total capacity before withdrawal limitsAfter mortgage payoff and costs.
Where the funds go
- Estimated borrowing limit
- Pay off mortgages and liens
- Financed upfront costs
- Total capacity before withdrawal limits
- Unavailable under the HECM closing limit
- Maximum cash available at closing
No required monthly principal and interest payments.
You must still pay property taxes, homeowners insurance and applicable HOA charges, maintain the home, and meet occupancy requirements.
Your home and loan over time
Illustration at year
Home value
Loan balance
Remaining equity*
Unused credit capacity
*Before selling costs. Interest and FHA insurance are added monthly. The loan can grow beyond the home’s value; the illustration keeps that full balance visible. FHA nonrecourse protection generally means you or your heirs will not have to use other assets to cover that difference.
Your reverse mortgage estimate
Capacity and closing cash
- Total capacity after payoff and costs
- Cash to you at closing in this illustration
- New loan balance at closing
Inputs and assumptions
Estimated upfront costs
- FHA insurance · 2% of claim amount
- Lender origination fee
- Other closing costs
- Total financed upfront costs
Compare ways to receive funds
| Option | First year | After year one |
|---|
These are separate alternatives, not amounts you can add together. Fixed and adjustable options use their respective rate assumptions. A short term can leave funds unadvanced because of the first-year limit; ask a lender about payment-plan changes.
Annual illustration
| Year / age | Funds to you | Interest added | FHA insurance | Loan balance | Home value | Equity* | Credit capacity** |
|---|
You retain ownership. The loan generally becomes due when the last borrower dies, sells, or permanently moves out, or when loan obligations are not met. Eligible non-borrowing spouses may qualify for a repayment deferral, but cannot continue receiving advances. HECMs are nonrecourse loans; heirs can discuss selling the home or keeping it under the lender’s payoff rules.
How this works
Borrow against part of your home equity
A HECM is an FHA-insured loan for eligible homeowners age 62+. Your home remains yours. Available funds depend on age, rates, home value, existing debt, and costs. This calculator does not determine whether you qualify.
Receive funds in the way that fits your plans
Upfront cash is a single fixed-rate disbursement. A credit line lets you borrow when needed. Monthly advances can run for a chosen term or under a tenure plan. Unused credit can grow as borrowing capacity; it does not earn interest for you.
Understand what grows and what you still pay
Borrowed funds, financed costs, interest, and FHA mortgage insurance build the loan balance. Taxes, homeowners insurance, maintenance, and applicable HOA charges remain your responsibility. Failure to meet loan requirements can lead to foreclosure.
Know when repayment is required
The loan generally becomes due when the last borrower dies, sells, or permanently leaves the home. Ending a term advance period does not itself make the loan due. Tenure is conditional on continued occupancy and meeting loan requirements; it is not unconditional lifetime income.
Include your spouse and family
A younger spouse may reduce proceeds even when not borrowing. An eligible non-borrowing spouse may be able to stay under a repayment deferral but cannot receive further advances after the last borrower dies. FHA nonrecourse protection limits recovery; heirs should discuss repayment and home-retention options with the servicer.
Talk it through before deciding
HUD-approved HECM counseling is required. A counselor can help compare a reverse mortgage with alternatives such as downsizing, a HELOC, or refinancing. A lender must review the property and your ability to meet ongoing obligations.
Find HUD-approved housing counseling