Reverse Mortgage Estimate Calculator
A Home Equity Conversion Mortgage (HECM) is the federal reverse mortgage program insured by HUD. The amount you can borrow depends on your age (or the age of the youngest borrower), the appraised value of your home (capped at the FHA lending limit), and the expected interest rate. HUD publishes principal limit factor (PLF) tables that, when applied to the maximum claim amount, give the gross principal limit available. This calculator uses a simplified PLF approximation to provide an estimate; contact a HUD-approved HECM counselor for a precise figure.
This estimate uses a simplified PLF approximation. Actual amounts require HUD PLF tables and HECM counseling. Not financial advice.
HECM principal limit estimation method
Max Claim Amount = min(Home Value, $1,149,825)
PLF approx = (Age - 62) * 0.012 + base(Expected Rate)
Gross Principal Limit = Max Claim Amount * PLF
UFMIP = Max Claim Amount * 0.02
Net Proceeds = Gross Principal Limit - UFMIP - Existing Mortgage
Note: This calculator uses a linear approximation of HUD's PLF tables. Actual PLFs are published in HUD Mortgagee Letters and vary by age and expected interest rate. The approximation is for orientation only; consult a HUD-approved HECM counselor (required by law before loan origination) for exact figures.
HECM reverse mortgage facts
- Minimum borrower age is 62 for HECM loans.
- You must live in the home as your primary residence and keep it in good repair.
- HECM counseling from a HUD-approved agency is required before applying (typically $125 to $250).
- The loan balance grows over time and is repaid when you sell, move out permanently, or pass away.
- You retain title to your home; the lender does not own it.
Reverse mortgage: frequently asked questions
What is a reverse mortgage?
A reverse mortgage is a loan for homeowners aged 62 or older that allows them to convert home equity into cash without selling the home or making monthly mortgage payments. The loan balance grows over time as interest accrues and is repaid when the borrower sells, moves out, or passes away.
What is the HECM principal limit?
The Home Equity Conversion Mortgage (HECM) principal limit is the maximum amount a borrower can receive from a reverse mortgage. It is determined by three factors: the borrower's age (or the age of the youngest borrower or eligible non-borrowing spouse), the lesser of the appraised home value or the FHA lending limit, and the expected interest rate.
How does the principal limit factor work?
HUD publishes a table of principal limit factors (PLFs) for each combination of age and expected interest rate. The PLF is a multiplier applied to the maximum claim amount (lesser of home value or FHA limit) to determine the gross principal limit. Older borrowers and lower expected interest rates result in higher PLFs.
What is the FHA lending limit for HECM?
The FHA HECM lending limit is $1,149,825 in 2024. If your home is worth more than this, only $1,149,825 is used in the calculation. Your home value above this limit does not increase your principal limit.
How is net proceeds calculated?
From the gross principal limit, HUD deducts the HECM upfront MIP (2% of the maximum claim amount), origination fees, and other closing costs. The net amount is available as a lump sum, line of credit, or monthly payments. This calculator shows a simplified estimate; contact a HUD-approved HECM counselor for an exact figure.
Official sources
- HUD: HECM Reverse Mortgage Program.
- Consumer Financial Protection Bureau: What is a reverse mortgage?
Reviewed by the CalculatorHub team, edited by James Graham, 15 June 2026. See our methodology.