Reverse Mortgage (HECM) Calculator
Calculate how much you can access from your home equity with a reverse mortgage.
Home Equity Conversion Mortgage Calculator
Find out how much you can borrow and explore different payment options
HECM Eligibility Requirements
- Must be 62 years or older
- Own your home outright or have significant equity
- Live in the home as your primary residence
- Must complete HUD-approved counseling
Understanding Reverse Mortgages
How Reverse Mortgages Work
A reverse mortgage converts your home equity into cash without requiring monthly payments. Instead of paying the lender, the lender pays you. The loan balance grows over time as interest accrues, and is repaid when you sell, move out, or pass away.
The amount you can borrow depends on your age (older = more), home value, and current interest rates (lower = more).
Payment Options Explained
- Lump Sum: Receive all available funds at once (fixed rate only)
- Tenure: Equal monthly payments for as long as you live in the home
- Term: Equal monthly payments for a specified period
- Line of Credit: Draw funds as needed; unused portion grows over time
HECM Costs & Fees
- Initial MIP: 2% of home value (FHA insurance)
- Ongoing MIP: 0.5% annually on loan balance
- Origination Fee: Up to $6,000 based on home value
- Closing Costs: Appraisal, title insurance, recording fees
- Most costs can be financed into the loan
Important Considerations
- You must continue paying property taxes and insurance
- Home must be maintained in good condition
- Non-borrowing spouse protections available
- Loan balance can never exceed home value (non-recourse)
- Heirs can refinance or sell to repay loan