Reverse Mortgage Calculator

Estimate reverse mortgage proceeds for homeowners 62+ based on home value and age.
$
%

Approx. Loan Proceeds

$167,400.00

Equity Remaining

$232,600.00

Reverse Mortgage Estimate

Borrower Age70
Principal Limit Factor41.85%
Available Proceeds$167,400.00
Remaining Home Equity$232,600.00

Use the Reverse Mortgage Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

Our Reverse Mortgage Calculator helps homeowners aged 62 and older estimate their potential reverse mortgage proceeds, crucial for retirement planning. It leverages 2026 HECM (Home Equity Conversion Mortgage) guidelines, including the new principal limit factors and expected interest rates, to provide a realistic assessment of available funds based on your home's value and age.

The calculation primarily uses the Maximum Claim Amount (MCA), capped at the 2026 FHA lending limit of $1,149,825, or the appraised value, whichever is lower. This MCA is then multiplied by the Principal Limit Factor (PLF) corresponding to the youngest borrower's age and the expected interest rate (EIR), typically a 10-year CMT index plus a margin, to determine the initial principal limit.

Remember, the calculated proceeds are gross and don't account for closing costs, origination fees, or mandatory mortgage insurance premiums. A common mistake is overlooking the impact of property taxes and homeowner's insurance, which you're still responsible for, potentially leading to loan default if not paid.

Example: Eleanor's Reverse Mortgage Estimate

  1. 1 Eleanor, aged 70, owns a home valued at $650,000. For 2026, let's assume an expected interest rate (EIR) of 6.00% and a corresponding Principal Limit Factor (PLF) for a 70-year-old at 0.525.
  2. 2 First, we determine the Maximum Claim Amount (MCA): $650,000 (appraised value) as it's below the 2026 FHA limit. Then, we multiply the MCA by the PLF: $650,000 * 0.525.
  3. 3 This calculation yields an initial principal limit of $341,250. This is the maximum amount Eleanor can borrow before factoring in mandatory set-asides for closing costs.
  4. 4 After deducting an estimated $15,000 for closing costs and initial mortgage insurance, Eleanor could potentially receive approximately $326,250 in net proceeds from her reverse mortgage in 2026.

Source: CFPB — Owning a Home · Last updated: April 2026

Frequently Asked Questions

How does a reverse mortgage work?
A reverse mortgage lets homeowners 62+ convert home equity into cash without monthly mortgage payments. You receive funds as a lump sum, line of credit, or monthly payments. The loan balance grows over time and is repaid when you sell, move out, or pass away.
How much can I get from a reverse mortgage?
The amount depends on your age, home value, and current interest rates. Generally, you can access 40-60% of your home's appraised value. Older borrowers and higher-value homes qualify for more. The 2026 HECM lending limit caps the home value used at $1,209,750.
What are the downsides of a reverse mortgage?
High closing costs (2-5% of home value), growing loan balance that reduces heirs' inheritance, mortgage insurance premiums, and the requirement to maintain the home and pay property taxes and insurance. If you fail to maintain the home or pay taxes, the loan can become due.

You might also need

Mortgage Calculator 2026 — Payment, Amortization & PMI

Calculate your monthly mortgage payment with taxes, insurance, PMI, and HOA. View full amortization schedule. Free, instant results based on current rates.

FHA Loan Calculator 2026 — MIP, Down Payment & Limits

Calculate FHA loan payments including upfront MIP (1.75%) and annual MIP premiums. See when MIP drops off. Free, instant results based on 2026 FHA limits.

Home Affordability Calculator — How Much House Can You Afford?

Find out how much house you can afford based on income, debts, down payment, and current mortgage rates. Free, instant results with DTI ratio breakdown.