Reverse Mortgage Calculator — Estimate Proceeds

Reverse Mortgage Estimate

This tool provides a quick, conservative estimate of an initial principal limit and estimated proceeds for a Home Equity Conversion Mortgage (HECM). It is not an official lender calculation — consult an approved HUD lender for definitive numbers.

Home appraised value (USD) Existing mortgage balance to pay off (USD) Age of youngest borrower (years) Expected interest rate (APR % — choose lender estimate) Maximum claim amount (defaults to appraised value — adjust if HUD lending limit applies) Estimated up-front fees & closing costs (USD)

Important: This is an educational estimate. Exact entitlement and disbursement rules (including HUD lending limits and first-year payout restrictions) vary — contact a HUD-approved reverse mortgage lender to get a closing estimate.

What Is a Reverse Mortgage Calculator?

A Reverse Mortgage Calculator is a financial tool that helps homeowners—typically aged 62 and older—estimate how much money they can borrow against the equity in their home. Unlike a traditional mortgage, where you make monthly payments to the lender, a reverse mortgage allows you to receive money from the lender, turning your home’s value into usable cash while you continue living in it.

This calculator provides an easy and accurate way to understand how much equity you can access, based on your age, home value, current mortgage balance, and interest rate.

Why Use a Reverse Mortgage Calculator?

For many retirees, home equity represents a large portion of their financial wealth. A reverse mortgage can be a valuable option for supplementing income, covering healthcare costs, or funding long-term goals.
Using the Reverse Mortgage Calculator helps you:

Estimate loan proceeds based on your home’s current market value.
Understand how age and interest rate affect the amount you can borrow.
Compare different scenarios before speaking with a lender.
Plan retirement finances more confidently with real numbers.

This calculator gives you a clear financial snapshot, allowing you to make smart and informed decisions about your home equity.

How It Works

Enter your details — home value, outstanding mortgage balance, age of the youngest homeowner, and estimated interest rate.
The calculator uses the Federal Housing Administration (FHA) formulas and lending limits to estimate the potential loan amount.
It displays an approximate range of how much equity you can access through a reverse mortgage.

You can adjust the inputs anytime to see how different factors—like age or home value—change your available funds.

Important Notes

You retain ownership of your home.
You are still responsible for property taxes, insurance, and maintenance.
The loan becomes due when you move out or sell your home.

Final Thoughts

A Reverse Mortgage Calculator helps older homeowners take control of their financial future. It’s a simple, reliable, and educational tool for understanding how to convert home equity into financial flexibility—without giving up your home.

Use it to explore your options today and plan a secure, stress-free retirement!