HECM Reverse Mortgage Calculator | Kimberly & Raymond Gedstad

Youngest Borrower's Age

Estimated Value of Your Home

Total Liens (1st & 2nd mortgage, HELOC, etc.)

Growing Line of Credit

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Initial Loan Balance

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After fees & liens paid at closing

Estimated Equity

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Home value minus loan balance at closing

LOC in 10 Years

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At current expected rate

How We Calculated This Based on current HUD PLF tables & live rate data — updated weekly

Max Claim Amount

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Expected Rate

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PLF Factor

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Initial Principal Limit

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Initial (Current) Rate

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Origination Fee

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Upfront MIP (IMIP)

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Title & Closing Fees (Est)

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Total Fees

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Opening Loan Balance

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* there are numerous factors used to determine the possible line of credit or loan proceeds including actual appraised value (FHA appraisal required after application submission), actual payoff at the time of closing if applicable, third party fees, credit and income determinations and others. This calculator is updated every Monday evening to account for weekly changes. Due to these factors, although a very close estimate, this is only an estimate, not a quote or proposal. If you would like to receive a proposal delivered to your inbox, please Click Here!

This is not a quote or proposal, it is simply what one might be able to expect considering the current rate environment and values provided... If you would like a proposal, Click here!

Simply type in your annual payment in the green Payment column, or your annual draws in the green LOC Draw column to see how this could play out over time.
i.e. if your current mortgage payment is $1,000/month, type $12,000 in the first five payment rows to see your line of credit after 5 years of making payments into a HECM.

Equity Breakdown at Closing

How your home value is allocated

Loan Balance Projection

Home value appreciation at 4% annually · Green fields are editable

Home value is based on a 4% annual appreciation. Type in the green Payment or LOC Draw fields to model different scenarios.

Yr.	Age	Payment	Balance	LOC	Home Val	Equity	LOC Draw

This is not a quote or proposal, it is simply what one might be able to expect... Get a Proposal →

Common Questions

HECM Reverse Mortgage FAQ

Everything you need to know about how a HECM reverse mortgage works — answered by licensed specialists Kimberly and Raymond Gedstad.

What is a HECM reverse mortgage?

A HECM (Home Equity Conversion Mortgage) is an FHA-insured reverse mortgage that allows homeowners aged 62 or older to convert a portion of their home equity into loan proceeds — as a line of credit, lump sum, monthly payments, or a combination. No monthly mortgage payments are required as long as you live in the home as your primary residence, maintain homeowner's insurance, and pay property taxes.

Does the bank own my home with a reverse mortgage?

No. You retain full title and ownership of your home throughout the life of the loan. The lender holds a lien — just like a traditional mortgage. You can sell the home at any time, and any equity remaining after the loan is repaid belongs entirely to you or your heirs.

What age do you have to be to get a reverse mortgage?

The youngest borrower or non-borrowing spouse must be at least 62 years old to qualify for an FHA HECM. Generally, the older you are, the higher your Principal Limit Factor (PLF) and the more equity you can access. Use the calculator above to see exactly how age affects your numbers.

What is the 2026 HECM lending limit?

The 2026 FHA HECM maximum claim amount (MCA) is $1,249,125. This is the maximum home value used in the calculation regardless of your actual appraised value. If your home is worth more, the MCA is still capped at $1,249,125 — though proprietary (non-FHA) reverse mortgages may accommodate higher-value homes.

When does a HECM loan have to be repaid?

Repayment is triggered when the last surviving borrower sells the home, permanently moves out, or passes away. Other due-and-payable conditions include failing to pay property taxes or homeowner's insurance, or not occupying the home as a primary residence for more than 12 consecutive months.

How does the HECM line of credit grow over time?

The unused portion of your HECM line of credit grows automatically at the same rate as your loan balance — the Expected Interest Rate (EIR) plus 0.5% ongoing mortgage insurance premium (MIP). This is a contractual guarantee: your available credit grows regardless of what happens to your home's market value. The longer you wait to draw on the line, the larger it becomes. The projection table in the calculator above shows this growth year by year.

Can I get a HECM if I still have a mortgage or HELOC?

Yes. Any existing mortgage, HELOC, or other lien must be paid off at closing using HECM proceeds. You can still qualify as long as you have sufficient equity for the HECM to cover the payoff, closing costs, and leave you with a remaining line of credit or proceeds. Enter your current mortgage balance in the calculator's "Total Liens" field to see your net result.

What is a Principal Limit Factor (PLF)?

The PLF is a HUD-published table value (between 0 and 1) that determines what percentage of the Maximum Claim Amount you can borrow. It is based on the youngest borrower's age and the current Expected Interest Rate. Older borrowers and lower interest rates produce higher PLF values — and therefore larger loan amounts. Our calculator uses the official HUD PLF tables, updated every Monday.

What are the upfront costs of a HECM?

HECM closing costs typically include: (1) Upfront Mortgage Insurance Premium (IMIP) — 2% of the Maximum Claim Amount; (2) Origination fee — up to $6,000 depending on home value; (3) Title, appraisal, and third-party fees — typically $2,500–$3,500; and (4) HUD-required counseling fee — roughly $125–$200. All fees can be financed into the loan so no out-of-pocket cash is required at closing. The calculator's breakdown panel shows your estimated fees.

What happens to the home when the last borrower passes away?

When the last borrower passes away or permanently vacates the home, the loan becomes due and payable. Heirs typically have 6–12 months (with extensions available) to sell the home and repay the loan, refinance into a conventional mortgage to keep the home, or deed the property to the lender if the balance exceeds the home's value. Because a HECM is a non-recourse loan, heirs can never owe more than the home's appraised value at that time — the FHA insurance covers any shortfall.

Get Your Official Proposal

Ready for the Real Numbers?

Our calculator gives you a solid estimate — but an official proposal from Kimberly or Raymond accounts for your specific property, current CMT index, and all available loan scenarios.

No pressure. No obligation. Just honest, clear information tailored to your situation.

Free consultation with a licensed HECM specialist (CRMP certified)
Multiple loan scenarios compared side-by-side
Line of credit growth projections included
Independent HUD counseling referral provided
Licensed in AZ, NM, CA, CO, WA
Your information is never sold to third parties

About HUD Counseling

Every HECM borrower is required by federal law to meet with an independent, HUD-approved housing counselor before submitting an application. The counselor works for you — not the lender — and will review your options, costs, and obligations at little or no cost.

There's no rush — you're welcome to speak with us first and do the counseling whenever you're ready. Either way, it will need to be completed before your application is submitted.

Find a HUD-Approved Counseling Agency →

Request Your Free Proposal

Kimberly or Raymond will respond within 1 business day — no obligation, ever.

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Estimated Home Value

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Kimberly or Raymond will reach out within 1 business day. Feel free to run more scenarios in the calculator above.