A reverse mortgage calculator estimates how much of your home's equity you can access with a HECM (Home Equity Conversion Mortgage) based on three things: the age of the youngest borrower, your home's value, and current interest rates. Most homeowners 62+ qualify for roughly 30%–65% of their home's value. Enter your numbers below — results are instant and no contact information is required.
Your HECM borrowing power (the "principal limit") is set by HUD using three inputs: the age of the youngest borrower, the expected interest rate, and the lesser of your home value or the 2026 FHA lending limit of $1,249,125. HUD publishes principal limit factor (PLF) tables that assign a percentage to each age/rate combination — this calculator uses those published factors. From your principal limit, we subtract the 2% FHA upfront mortgage insurance premium, estimated origination and closing costs, and any existing mortgage payoff. What remains is yours to take as a line of credit, monthly payments, a lump sum, or a combination.
These are good-faith estimates, not a quote. Your actual figures depend on the day's expected rates, your specific program, and appraisal. In about 15 minutes Michele can run your exact scenario using live rates.
A HECM works best for homeowners 62+ who plan to stay in their home and want to eliminate a monthly mortgage payment, create a growing safety-net line of credit, supplement retirement income, or pay for in-home care. With a background in elder care and Medicaid planning, Michele helps families coordinate reverse mortgages with their broader care and benefits picture — something most loan officers can't do.
Most borrowers qualify for roughly 30% to 65% of their home's value, based on the age of the youngest borrower, current expected interest rates, and the FHA lending limit ($1,249,125 in 2026). The older you are and the lower the rate, the more you can access.
Yes. You keep title to your home — the lender simply holds a lien, like any mortgage. You remain responsible for property taxes, homeowners insurance, and basic upkeep.
Youngest borrower 62 or older, the home is your primary residence, sufficient equity (typically 50%+), a HUD-approved counseling session, and a financial assessment showing you can keep up taxes and insurance.
No. Reverse mortgage proceeds are loan advances, not income — they aren't taxed and generally don't affect Social Security or Medicare. They can affect needs-based benefits like Medicaid or SSI, which is exactly where Michele's elder-care planning background helps.
Your heirs choose: repay the loan and keep the home, sell and keep remaining equity, or walk away with no personal liability. HECMs are non-recourse — heirs never owe more than 95% of the home's appraised value.
The unused portion grows monthly at the loan's rate + 0.5%, compounding, regardless of what your home is worth. Many financial planners recommend opening a HECM line of credit early for this reason.
Estimates are for educational purposes only and are not a loan offer, approval, or commitment to lend. Actual principal limits, rates, costs, and proceeds vary with HUD expected rates, program selection, appraisal, and underwriting, and may include a Life Expectancy Set-Aside (LESA). First-year draws may be limited to 60% of the principal limit. HUD-approved counseling is required. Borrowers must maintain the property and stay current on property taxes and homeowners insurance. Michele Albohn · In Good Hands Mortgage, powered by Coast2Coast Mortgage · 865-346-6280 · All loans subject to approval. Equal Housing Lender. NMLS #1989021.