Reverse Mortgage Calculator — Principal Limit & Monthly Proceeds Estimator
A reverse mortgage lets homeowners 62 and older access home equity without monthly mortgage payments — the loan is repaid when you sell, move, or pass away. On a $400,000 home with a youngest borrower age 70, estimated principal limits often fall in the $160,000-$200,000 range depending on rates and program rules. This educational calculator models proceeds for planning only.
Estimated Principal Limit
$188,000
- Principal Limit Factor
- 47.0%
- Est. Monthly Proceeds
- $783
- Est. Equity Remaining
- $0
Educational estimate only — not a HECM lender quote. Consult HUD-approved counselors.
Reverse Mortgage Estimate Breakdown
| Item | Estimate |
|---|---|
| Principal limit factor | 47.0% |
| Initial principal limit | $188,000 |
| Estimated monthly proceeds | $783 |
| Estimated loan balance at horizon | $781,582 |
| Estimated equity remaining | $0 |
Methodology and limitations
Last reviewed:
Methodology
Uses simplified principal limit factor by borrower age for educational planning.
Limitations
Not a HECM quote. Official PLFs, counseling, and HUD rules required before borrowing.
Official sources
How to Use the Reverse Mortgage Calculator — Principal Limit & Monthly Proceeds Estimator
A reverse mortgage lets homeowners 62 and older access home equity without monthly mortgage payments — the loan is repaid when you sell, move, or pass away. On a $400,000 home with a youngest borrower age 70, estimated principal limits often fall in the $160,000-$200,000 range depending on rates and program rules. This educational calculator models proceeds for planning only.
Method used
Uses simplified principal limit factor by borrower age for educational HECM planning.
Practical example
Example: $400,000 home, age 70 borrower — estimate principal limit range.
What this includes
- Educational proceeds estimate only.
- Includes age and home value inputs.
What this excludes
- Not a HUD-approved HECM quote — counseling required.
Frequently Asked Questions
How does a reverse mortgage work?
A reverse mortgage advances loan proceeds to the borrower while interest and fees accrue on the growing balance. You retain title and typically do not make monthly principal and interest payments. The loan becomes due when the last borrower leaves the home. FHA-insured HECM is the most common type. Required counseling and age, occupancy, and equity rules apply.
How much can I borrow with a reverse mortgage?
Borrowing power depends on youngest borrower age, home value, interest rates, and FHA lending limits. Older borrowers and lower rates generally increase principal limits. This calculator uses a simplified principal limit factor for education — official HECM PLFs from HUD and lenders produce binding quotes. Never rely on this alone for a financial decision.
What are reverse mortgage fees?
HECM loans include origination fees, upfront mortgage insurance premium, servicing fees, and third-party closing costs. Interest accrues on the balance over time. Fees reduce net proceeds available to you. This calculator includes a rough fees estimate; request itemized disclosures from a HUD-approved counselor and lender.
Do I still pay property taxes on a reverse mortgage?
Yes. You must remain current on property taxes, homeowners insurance, and HOA dues, and maintain the home as your primary residence. Failure to meet these obligations can trigger default. Budget ongoing housing costs even without monthly mortgage payments. This calculator includes tax and insurance assumptions in long-range balance projections.
Is a reverse mortgage right for me?
Reverse mortgages suit some retirees who plan to stay in the home long term and need supplemental income or debt payoff without selling. They are less suitable if you may move soon, want to maximize inheritance, or cannot afford ongoing property charges. Speak with a HUD-approved reverse mortgage counselor before applying.