Reverse Mortgage Payout Estimator
Estimate how much cash you could access from a HECM reverse mortgage based on your home value, age, existing mortgage balance, and payout option.
Reverse Mortgage (HECM) Payout Formula
A Home Equity Conversion Mortgage (HECM) — the FHA-insured reverse mortgage program — calculates how much you can borrow using your home's value (capped at the FHA lending limit), a Principal Limit Factor (PLF) based on the youngest borrower's age and the expected interest rate, minus upfront costs and any existing mortgage balance.
The Principal Limit Factor increases with the borrower's age and decreases as the expected interest rate rises. This calculator uses an approximation of HUD's published PLF tables; your actual factor and proceeds will be determined by a HUD-approved lender using the official table in effect on your loan date.
How to Use the Reverse Mortgage Payout Estimator
Enter your home value and age
Input your home's current market value and the age of the youngest borrower (or eligible non-borrowing spouse) — both directly affect how much you can borrow.
Add your existing mortgage balance
Enter any remaining balance on your current mortgage, which must be paid off first using reverse mortgage proceeds or other funds.
Set the expected interest rate and closing costs
Enter the expected interest rate (used to determine your Principal Limit Factor) and an estimate of third-party closing costs (appraisal, title, recording fees, etc.).
Choose a payout option
Select Lump Sum, Line of Credit, or Tenure (Monthly for Life) to see how your net proceeds translate into that payout structure.
Click Calculate
View your estimated principal limit, total upfront costs, net available proceeds, and — for a line of credit — how the unused balance could grow over time.
Real-World Scenario Example
"A 72-year-old homeowner has a home worth $400,000, an existing mortgage balance of $50,000, expects a 6.5% interest rate, estimates $3,000 in closing costs, and wants a line of credit."
Inputs
Result
Estimated principal limit: $202,600 (about 50.7% of the $400,000 home value). After paying off the $50,000 existing mortgage and $17,000 in upfront costs (2% MIP + origination fee + closing costs), the net available line of credit is $135,600. Left untouched, this credit line could grow to roughly $524,729 after 20 years at the estimated 7% annual growth rate.
Important Disclaimer
This calculator provides rough estimates for educational purposes only and does not constitute financial or lending advice. Actual HECM principal limits, fees, and interest rates are determined by HUD's official PLF tables, current rates, and a HUD-approved lender at the time of application. Consult a HUD-approved reverse mortgage counselor and lender for exact figures.
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