Borrower, home, and payoff details
Costs and initial draw
Projection assumptions
This is an educational estimate, not HECM approval, a lender quote, financial advice, legal advice, tax advice, or counseling.
| Line item | Amount | What it means |
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Suitability depends on age, spouse protections, how long the borrower expects to stay, available alternatives, estate goals, tax and insurance reliability, maintenance capacity, and the final lender quote.
Methodology notes
Principal limit
The calculator applies a simplified factor to the lesser of home value and the FHA lending limit entered. The factor rises with age and falls as the expected rate increases. It is not HUD's official PLF table.
Net proceeds
Existing mortgage payoff, upfront mortgage insurance, origination, lender, and closing costs are treated as mandatory obligations before cash is available to the borrower.
Equity projection
The projected balance compounds from payoff, costs, and initial draw at the balance growth rate. Home value compounds separately at the appreciation assumption.
This calculator intentionally simplifies HECM rules. It does not model LESA set-asides, monthly tenure or term advance schedules, line-of-credit growth, repair set-asides, servicing fees, mortgage insurance renewal premiums, state-specific rules, or tax effects. See full disclosure.
Reverse mortgage FAQ
Is this official HECM math?
No. It is a simplified planning model. Use it to prepare questions, then compare official lender quotes and counseling materials.
Why does my current mortgage matter?
A reverse mortgage generally must pay off existing liens first. A large payoff can consume most or all of the principal limit.
What can trigger repayment?
Repayment can be triggered by sale, death, moving out, failing occupancy requirements, or defaulting on taxes, insurance, maintenance, or other obligations.