How our reverse mortgage calculators work
Published: ·Last updated:
Our calculators are educational tools designed to make assumptions visible before you request an estimate. This page explains the data sources, formulas, update cadence, limitations, and meaning of each result. Last updated: July 26, 2026.
Get your Reverse Mortgage Estimate Summary.
Complete the short estimate form and we send back a full HECM summary: your estimated principal limit, complimentary home value estimate, payoff of any existing mortgage, and estimated proceeds available to you.
- Complimentary home value estimate
- Estimated principal limit for your age
- Existing mortgage payoff included
- Lump sum, line of credit, or monthly options
Illustration only, generated from the information you enter. Not a loan estimate, pre-qualification, commitment to lend, or approval. Subject to HUD counseling, appraisal, credit and income review, and final lender approval. You remain responsible for property taxes, insurance, and home maintenance.
Estimate summary
- Home value estimate
- $412,000
- Youngest borrower age
- 72
- Estimated principal limit
- $219,400
- Existing mortgage payoff
- $68,000
- Estimated proceeds available
- $151,400
Simply Approved Mortgages • NMLS #2620881 • Equal Housing Opportunity
What the calculators estimate
The calculators model possible HECM principal limits, estimated closing costs, potential net proceeds after an existing mortgage, HECM for Purchase cash needs, unused line-of-credit growth, or a projected balance and equity path. Each result is a planning illustration—not a quote, approval, appraisal, APR, or commitment to lend.
Primary sources and program inputs
Program inputs are based on published HUD and FHA materials, applicable federal regulations, and consumer guidance from the CFPB. The 2026 HECM maximum claim amount used by the current model is $1,249,125; the model caps the property value used for that calculation at the applicable HUD limit. When HUD publishes a new program-year limit or changes a controlling rule, the source and model are reviewed before the site is refreshed.
Sources: HUD Mortgagee Letters; HUD — FHA Mortgage Limits; HUD HECM for Purchase Program (4000.1 Handbook); CFPB — Reverse Mortgages
Principal-limit and net-proceeds model
The HECM estimate uses the youngest borrower's age, the home value, the expected interest rate input, and any existing mortgage balance. The model reads the factor directly from HUD’s published Principal Limit Factor table (no interpolation), then subtracts modeled mortgage payoff and itemized educational costs. Actual HECM calculations use the precise HUD table and case-specific lender data.
Closing-cost model
The closing-cost calculator separates an estimated origination fee, initial mortgage insurance premium, and third-party costs. The origination-fee and initial-MIP logic follows the published federal/HUD framework; third-party costs are a planning estimate because appraisal, title, recording, counseling, and other charges vary by property, state, provider, and transaction.
Purchase, credit-line, and balance projections
The HECM for Purchase tool estimates the cash contribution after modeled financing costs. The credit-line tool compounds unused availability using its displayed note-rate assumption plus the modeled annual mortgage-insurance accrual. The balance tool shows an illustrative balance and home-value path using the displayed appreciation and rate assumptions. These projections are not promises about future home values, available credit, interest rates, or equity.
Update cadence and limitations
Time-sensitive program limits, sources, and data displays are reviewed on a scheduled basis and when the authoritative source changes. The current site freshness stamp is 2026; the page's visible Last updated date identifies the current review snapshot. Estimates can differ because of appraisal results, property eligibility, borrower age and status, expected rate, set-asides for taxes or insurance, repairs, lender fees, counseling, and other underwriting requirements.
The useful question is not only ‘what is the number?’
A calculator is most useful when it shows what could move the result and what the result does not decide. Compare the estimate with your mortgage payoff, planned use of funds, ongoing property obligations, alternatives, and the effect on future equity; then request a lender-verified estimate from a licensed loan officer.
Educational perspective from Simply Approved Mortgages LLC, a mortgage broker, NMLS #2620881.
Licensing & Disclosures
Simply Approved Mortgages LLC | NMLS #2620881
Florida Branch Office (Miami, FL) | Branch NMLS #2688012
Florida Mortgage Broker License #MBR7685 | Colorado Mortgage Company Registration
Business Phone: (877) 813-7219
Equal Housing Opportunity
Broker identification. Simply Approved Mortgages LLC is a mortgage broker and is not a direct lender. We arrange residential mortgage loans with third-party lenders and do not make the lender's final credit decision or fund the loan. We arrange residential mortgage loans in Florida and Colorado.
Reverse mortgages are loans. A reverse mortgage is a loan secured by your home and is not free money or a government benefit. Interest and applicable fees are added to the loan balance, which generally increases over time. The loan must eventually be repaid. You retain title to your home, subject to the mortgage or lien securing the reverse mortgage.
HECM loans. A Home Equity Conversion Mortgage (HECM) is a reverse mortgage insured by the Federal Housing Administration (FHA), part of the U.S. Department of Housing and Urban Development (HUD). HECMs are generally available to homeowners age 62 or older who meet applicable program, property, occupancy, financial assessment, counseling, and other eligibility requirements. FHA insurance protects the HECM program and provides certain protections; it does not constitute government approval of the borrower or endorsement of Simply Approved Mortgages LLC.
Borrower obligations. HECM borrowers must continue to satisfy applicable loan obligations, including occupying the property as their principal residence, paying property charges such as property taxes and homeowners insurance when due, and maintaining the home in accordance with applicable requirements. Other property charges may also apply, including flood insurance, condominium or homeowners association charges, ground rents, or assessments where applicable. Failure to satisfy applicable loan obligations may cause the loan to become due and payable and could result in foreclosure.
Repayment. A HECM generally becomes due and payable when the last applicable borrower dies, sells the home, or no longer occupies the property as a principal residence, subject to applicable HUD requirements and protections, including certain protections that may apply to an eligible non-borrowing spouse. A HECM may also become due and payable earlier if applicable borrower obligations are not satisfied.
Independent counseling. HECM borrowers are required to complete counseling with a HUD-approved housing counseling agency as part of the HECM process. The counseling agency is independent of Simply Approved Mortgages LLC and the lender. Consumers may select an eligible HUD-approved counselor.
Credit and program terms. All reverse mortgage loans are subject to applicable program requirements, lender approval, financial assessment, acceptable appraisal, title review, property eligibility, insurance, counseling requirements where applicable, and supporting documentation. Available proceeds, rates, fees, mortgage insurance premiums, closing costs, payment options, and terms vary based on borrower age, property value, existing liens, interest rates, program requirements, lender, and other applicable factors and may change without notice. Nothing on this site constitutes loan approval, a rate lock, an offer, a commitment to lend, or a guarantee of proceeds, terms, or closing.
Rates, proceeds and calculators. Reverse mortgage proceeds, principal-limit estimates, home values, available equity, rates, loan balances, costs, and other calculator or scenario results displayed on this site are estimates or illustrations unless expressly stated otherwise. Actual proceeds and terms may differ. Calculator results do not constitute an appraisal, loan approval, rate lock, commitment to lend, or guarantee. Advertised rates, proceeds, payments, costs, and other credit terms are subject to the assumptions and disclosures presented with the applicable advertisement.
Government affiliation. Simply Approved Mortgages LLC is not a government agency and is not affiliated with, acting on behalf of, sponsored by, or endorsed by HUD, FHA, or any other federal, state, or local government agency. References to HUD, FHA, HECM, government programs, data, forms, or resources are provided for informational purposes and do not imply government sponsorship or endorsement of Simply Approved Mortgages LLC.
No professional advice. Site content is educational and general in nature and is not legal, tax, accounting, estate-planning, financial, investment, or government-benefits advice. Reverse mortgages may have financial, tax, estate, inheritance, and public-benefit considerations. Consumers should consult appropriate qualified professionals regarding their individual circumstances.
Fair lending. Equal Housing Opportunity. Simply Approved Mortgages LLC conducts business in accordance with applicable federal and state fair-housing and equal-credit-opportunity laws and does not discriminate on any prohibited basis.
Third-party content. References or links to HUD, FHA, government agencies, lenders, counseling agencies, products, services, or other third-party websites are provided for informational purposes or convenience. Simply Approved Mortgages LLC does not control and is not responsible for third-party content, availability, accuracy, or privacy practices.
NMLS Consumer Access: Verify Simply Approved Mortgages LLC, NMLS #2620881.
Calculator methodology questions
- Are the calculator results a loan quote?
- No. Results are educational estimates based on the inputs and assumptions shown on the page. Actual terms depend on the appraisal, borrower and property eligibility, the applicable HUD factors, lender underwriting, and figures available at closing.
- How often are the calculator inputs updated?
- Program-year limits and other time-sensitive inputs are reviewed when the applicable authoritative source changes and during the site's scheduled freshness review. The page shows a Last updated date so you can see the current review stamp.
- Why can my lender's number differ from the calculator?
- The calculator uses transparent educational assumptions and representative modeling. A lender uses the exact HUD table and case-specific information, including the appraised value, expected rate, set-asides, costs, and underwriting conditions.
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