How our reverse mortgage calculators work

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 applies a representative interpolation of published HUD Principal Limit Factor table anchor points, 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.