2026 HECM planning estimate

Reverse Mortgage Calculator

Estimate proceeds after paying off existing liens, upfront costs and reserves. Compare a fixed-rate lump sum with an adjustable-rate credit line, including limits on first-year access.

A HECM is a loan secured by your home. Find a HUD-approved HECM counselor to discuss eligibility, costs and alternatives before proceeding.

Homeowner and property

Youngest borrower age at closing Eligible non-borrowing spouse age (optional) Estimated home value ($) Existing mortgage and other liens to pay off ($) Expected annual interest rate (%) Property location (state or territory) Other upfront costs, excluding FHA insurance ($) Repair and first-year property-charge reserves ($) Net LESA after year one + servicing-fee set aside ($) Payment option

Use ages rounded to the nearest whole year at closing. All borrowers must be at least 62. A younger eligible non-borrowing spouse can reduce proceeds; ask a counselor about spouse eligibility and protections.

For an adjustable HECM, enter the lender's expected rate, not its initial note rate or APR. For fixed-rate loans use the note rate. The 6% starting value is an example, not a current market quote.

Enter lender-quoted origination, appraisal, title, counseling and other costs together. FHA upfront insurance is added automatically. Use lender-calculated reserves; LESA means life-expectancy set aside for property charges. Enter only the portion after year one in the final reserve field to avoid double counting. Zero assumes no required reserve.

Location identifies the scenario; the federal limit is nationwide. Local taxes, fees and property eligibility are not looked up. Include applicable local charges in your cost estimates.

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How this HECM estimate works

The 2026 maximum claim amount is the smaller of the home value and $1,249,125. The principal limit is that amount multiplied by the published factor for the youngest borrower or eligible non-borrowing spouse and the expected rate rounded to the nearest 0.125 percentage point. Ages above 99 use age 99. The supported lookup rates are 3% through 18.875%.

We subtract existing liens, 2% upfront mortgage insurance, entered closing costs and reserves. All these costs are assumed financed. First-year disbursements are limited to the larger of 60% of the principal limit or mandatory obligations plus 10% of the limit, capped at the principal limit less net future LESA and servicing reserves. Cash available then subtracts mandatory obligations. We assume the full permitted additional 10% is elected. Dollar components round to cents; percentage draw caps round down to cents.

Payment options and ongoing obligations

A fixed-rate HECM provides one disbursement at closing; unused capacity is unavailable for later draws. An adjustable-rate credit line allows later access under its terms. Term, tenure and combined monthly-payment plans require a separate lender quote and are not calculated here.

Interest and annual mortgage insurance increase the debt over time; annual FHA insurance is currently 0.5% of the outstanding balance. This calculator estimates opening proceeds only, so it does not project future loan balances, credit-line growth, monthly income or remaining equity.

You must occupy the home as a principal residence, maintain it and meet property-tax and insurance obligations. Financial assessment, property approval and HUD-approved counseling apply. An eligible non-borrowing spouse has specific protections and responsibilities, not automatic borrower access to funds.

This estimate covers a new HECM on an already-owned home. HECM-to-HECM refinancing, purchases, proprietary reverse mortgages, lender credits and cash-paid costs are excluded. Lender valuations, required reserves and final costs can change the result.

Program year, sources and review

Rules reviewed October 5, 2026. The claim limit applies to FHA case numbers assigned in 2026; this page must be updated before using a later year's rules. Factor edition: October 2, 2017, as linked on HUD's HECM resources page. The lookup data was transcribed from a published copy of that table; direct comparison with HUD's spreadsheet is pending because its download was unavailable during implementation.

Discuss the estimate with a counselor

Search HUD-approved HECM counseling agencies by location. Bring lender quotes and information about your mortgage, property charges and household circumstances. This tool does not replace counseling or lender underwriting.