We're getting things ready...

Reverse mortgage calculator

Estimate potential reverse mortgage proceeds from age, home value, rates, and payoffs. View balance vs home value over time (educational only).

Your information

Enter your best estimates below.

We use the lower of your home value and the FHA national limit (1,249,125).

72
5.25%

Clamped to 3–7% in this simplified model (official tables use finer increments).

6.50% + 0.50%

We add ~0.50% annual MIP to the note rate for a simple accrual speed (not a full servicing model).

Your result

Principal limit

Estimated maximum loan amount

$298K

After payoffs and fees, about $191,375 could be available as cash or a credit line at closing (simplified). Based on a home value cap of $550,000 and a 54.25% borrowing factor for your age.

Net at closing (est.)

$191,375

Home value used (FHA cap)

$550,000

Unsaved result

Loan balance vs. home value

Assumes no voluntary prepayments and no further draws after closing. Net equity is home value minus loan balance (not fees or selling costs).

  • Home value
  • Loan balance
  • Your remaining equity
01234567891011121314151617181920Year$-450000$0$450K$900K$1.4M

Year-by-year snapshot

Selected years — scroll for full horizon.

YearLoan balanceHome valueNet equity
0$298,375$550,000$251,625
1$319,945$566,729$246,784
2$343,073$583,966$240,893
3$367,874$601,728$233,854
4$394,468$620,030$225,563
5$422,984$638,889$215,905
6$453,561$658,322$204,760
7$486,349$678,345$191,996
8$521,508$698,978$177,470
9$559,208$720,238$161,030
10$599,633$742,144$142,512
11$642,980$764,717$121,737
12$689,461$787,977$98,516
13$739,303$811,944$72,642
14$792,747$836,640$43,893
15$850,054$862,087$12,033
16$911,505$888,309-$23,196
17$977,398$915,327-$62,070
18$1,048,054$943,168-$104,886
19$1,123,818$971,855-$151,962
20$1,205,059$1,001,415-$203,643

Your Home estimate

Your Home is one piece of your retirement plan

You are here. Five more steps bring every piece together to answer the bigger question: will your money last as long as you do?

Your Home is one piece of your retirement plan

Your HomePieces still to add

  • Home value
  • Youngest borrower age

Your retirement plan will also answer

  • When can I and my spouse retire?
  • How much should I save?
  • When should I claim Social Security?
  • Should I do Roth conversions?
  • How much can I safely withdraw?
  • Should I pay off debt first?
  • Would my plan weather market ups and downs?

How it works · Your path to a full Finance plan

  1. Home

    You are here

    Projected $298K

  2. Income

    Current income plus Social Security, pensions and annuities

  3. Expenses

    Day-to-day living, healthcare premiums and planned future costs

  4. Assets

    Homes, properties, investments and savings

  5. Non-mortgage debts

    Car loans, credit cards and other balances

  6. Annual savings and review

    Confirm yearly savings, then see your full plan

Interpretation

Understand your results

Planning context for the estimates above. Not tax, legal, or investment advice.

We use $550,000 as the home value for sizing (after any FHA limit). With a 54.25% borrowing factor for your age, the maximum loan amount is about $298,375 — the ceiling on what can be advanced in this simplified model.

After paying about $95,000 toward liens and $12,000 in closing costs, about $191,375 remains as cash or available credit in this estimate.

Over 20 years, if the note rate plus our simple MIP add-on held and the home appreciated about 3.0% annually, net equity (home minus loan) would land near -$203,643 — highly sensitive to appreciation, maintenance, taxes, insurance, and whether you take future draws.

HUD requires counseling for a HECM. Compare this output only as a conversation starter with a HUD-approved housing counselor and a licensed lender.

Methodology

How this calculator works

The rules and math behind this estimate.

We start with the lower of your home value and a planning FHA national lending limit. A borrowing factor for your age and expected interest rate comes from a small planning table (older borrowers and lower rates usually mean a higher factor) — not copied from official HUD tables.

Maximum loan amount equals capped home value × borrowing factor. At closing we first allocate to liens up to that limit, then to your entered closing costs, and treat the remainder as cash or line availability. For the long-run chart we accrue interest monthly using the note rate plus a flat 0.50% annual stand-in for ongoing mortgage insurance, with no voluntary payments and no further draws.

Real FHA reverse mortgages include exact insurance rules, set-asides, index margins, life-expectancy set-asides, and underwriting. This tool is educational only and not an offer of credit.

Frequently asked questions

Straight answers to common questions about this calculator.

How much money can I get from a reverse mortgage?

It depends on your age, home value, interest rates, and what you still owe on the home. Older borrowers and higher home values usually mean more available — up to program limits.

What is a reverse mortgage?

A loan against your home for people 62+. You generally do not make monthly principal and interest payments like a regular mortgage. The balance grows over time and is usually paid when you leave the home.

Will I lose my home?

You keep title, but you must pay property taxes, insurance, and upkeep. If you do not, the lender can foreclose — same as with any home loan.

Is this a real lender quote?

No. This is a planning estimate only. Real loans use official government tables, fees, and counseling. Talk to a HUD-approved counselor before deciding.

Retirement is more than your money

Your retirement plan is one of five pillars Retirelens helps you plan.

Finance

Know where you stand and what to do next with your money.

Health

Stay on top of coverage, care and habits that keep you well.

Purpose

Shape days you look forward to, with steps to get there.

Connections

Strengthen relationships and build a support circle.

Legacy

Organize what matters and document so your family isn't left guessing.