Reverse Mortgage Payment Calculator
Estimate the maximum HECM reverse mortgage proceeds available based on the youngest borrower's age, home value, and 2026 expected rates.
How HECM Reverse Mortgage Works in 2026
A Home Equity Conversion Mortgage (HECM) is the FHA-insured reverse mortgage available to homeowners 62 and older. The lender pays YOU — either as a lump sum, monthly tenure payments, or growing line of credit — secured by your home equity. No monthly mortgage payments are required as long as you live in the home, keep current on property taxes and insurance, and maintain the property.
The maximum loan ('Principal Limit') depends on the youngest borrower's age, the home value (capped at the 2026 HECM limit of $1,209,750), and the current expected interest rate. Older borrowers and lower rates yield higher proceeds. Source: HUD.gov HECM Program (FHA 4235.1). Last updated: May 2026.
HECM Costs and Fees
| Fee | Amount | When Paid |
|---|---|---|
| Upfront MIP | 2% of MCA | At closing (rolled in) |
| Annual MIP | 0.5% of balance | Added monthly |
| Origination fee | $2,500-$6,000 | At closing |
| Counseling fee | $125-$200 | Before application |
| Servicing fee | $30-$35/month | Throughout loan |
| Title, appraisal, recording | $2,000-$5,000 | At closing |
Total upfront costs typically $10,000-$25,000 — substantial. HECM is most economical when you'll stay in the home 7+ years.
When HECM Makes Sense
HECM is right for (1) homeowners 70+ with significant home equity who want monthly cash flow without selling, (2) borrowers who need a one-time lump sum to pay off an existing mortgage and eliminate the monthly payment, (3) homeowners who want a line of credit growing at the loan rate as a hedge against future expenses, and (4) couples planning to age-in-place where the home will eventually be sold.
HECM is wrong for (1) borrowers who might move within 3-5 years (closing costs not recovered), (2) those who can sell and downsize instead (often financially superior), and (3) anyone with major medical conditions likely to force a move to assisted living soon (HECM becomes due in full when you no longer occupy the home as principal residence).
Heirs and HECM at Borrower's Death
When the last borrower dies or permanently moves out, heirs have 6 months (extendable to 12) to (1) repay the loan balance and keep the home, (2) sell the home and keep any equity above the loan balance, or (3) deed the home to the lender (no liability — HECM is non-recourse). Critically, heirs never owe more than the home's value at sale — the FHA MIP protects them.
Reverse Mortgage Payment Calculator: How Tenure Payments Are Sized
The reverse mortgage payment calculator above uses HUD's actuarial tables to convert your Principal Limit into a monthly tenure payment. Per HUD HECM program rules, a tenure payment is sized so the loan balance reaches the Maximum Claim Amount (MCA) when the youngest borrower turns 100 — not "lifetime" in the actuarial sense, just very long. A 75-year-old borrower with $400K Principal Limit at 7% expected rate gets ~$2,650/month tenure for life-of-occupancy. If you take a partial lump sum first, the tenure portion shrinks proportionally. Always re-run the calculator after any draw decision; the monthly check is not a fixed amount — it is whatever the actuarial table outputs for your residual Principal Limit.
Tenure vs Term vs Line of Credit: When the Calculator Output Misleads
The same Principal Limit yields very different monthly figures depending on payout choice: tenure pays a smaller monthly amount but for life; term pays a larger monthly amount but stops after the chosen period (typically 5–15 years); line of credit pays nothing monthly but grows the unused balance at the loan rate per CFPB analysis — often the highest expected lifetime value. CFPB analysis shows that for borrowers under 75, the growing line of credit usually delivers the highest expected lifetime value. Run all three modes in the calculator before choosing; the "biggest monthly check" is rarely the best decision.
Sources: HUD HECM Program FAQ, CFPB Reverse Mortgage Report, HUD FHA Handbook 4235.1. Last updated 2026-06-30.
Frequently Asked Questions
Who qualifies for a reverse mortgage in 2026?
FHA HECM requires (1) youngest borrower 62 or older, (2) home is your principal residence, (3) home meets FHA property standards, (4) you have sufficient income or assets to pay property taxes, insurance, and maintenance (Financial Assessment), and (5) you complete HUD-approved counseling before closing.
How much money can I get from a reverse mortgage?
The Principal Limit ranges from approximately 40% (age 62, high rates) to 75% (age 85+, low rates) of the home value, capped at the 2026 HECM lending limit of $1,209,750. From this, you subtract any existing mortgage payoff and closing costs to get available proceeds.
Do I have to make any payments on a reverse mortgage?
No mortgage payments required. However, you MUST pay property taxes, homeowners insurance, HOA dues, and maintain the property. Failure to do so can trigger default and foreclosure \u2014 this is the #1 cause of HECM problems.
Will my heirs owe money on a reverse mortgage?
No. HECM is non-recourse \u2014 neither you nor your heirs can owe more than the home is worth at sale. If the home sells for less than the loan balance, FHA insurance covers the shortfall. If it sells for more, your heirs keep the difference.
How does the HECM line of credit grow over time?
Unused HECM line of credit grows at the same rate as the loan (current expected rate + 0.5% MIP). On a $200,000 unused line at 7% growth, it would grow to $283,000 in 5 years \u2014 automatically increasing your available borrowing power.
Is reverse mortgage interest tax-deductible?
Generally no, until the loan is repaid. When the loan is paid off (sale, refinance, or estate), all accumulated interest may be deductible in that tax year \u2014 but only if the proceeds were used to buy, build, or substantially improve the home (acquisition indebtedness, per IRS Publication 936).
Reverse mortgage payment calculator \u2014 what's the difference between tenure and term?
Tenure pays a smaller monthly amount but for as long as you live in the home as principal residence. Term pays a larger monthly amount but stops after a fixed period (5\u201315 years), after which you keep the home but get no more checks. Run both modes \u2014 if you expect to age in place 15+ years, tenure usually delivers more total dollars; for shorter horizons, term is bigger per month.
Why does my calculator output drop if I add a younger spouse?
HUD computes the Principal Limit using the YOUNGEST eligible borrower's age. Adding a 60-year-old spouse to a 75-year-old's loan drops the PLF from ~55% to ~45% of home value \u2014 roughly $50K\u2013$80K less on a $600K home. This is the HECM 'younger-age penalty.' If the spouse can wait to apply until both are 62+, the older spouse's higher PLF is preserved.