Reverse mortgage / home-equity estimator

A federally insured reverse mortgage (HECM) lets homeowners 62+ turn home equity into cash they never repay while living there. How much you can get depends mostly on the age of the youngest borrower and your home’s value. This gives an honest ballpark — after paying off any existing mortgage and upfront costs.

Home value Age of youngest borrower must be at least 62 Expected interest rate the lender’s long-term rate for the loan — drives the factor as much as age does Existing mortgage balance this must be paid off first

A rough estimate only. The real “principal limit” is set by the youngest borrower’s age and the expected interest rate, capped at the 2026 FHA maximum of $1,249,125 in home value. Both are inputs above, but the factors here are interpolated approximations of HUD’s published tables — your lender’s actual expected rate and factor will differ, so treat the result as a ballpark, not a quote. Upfront costs are real: a 2% FHA mortgage-insurance premium, an origination fee (up to ~$6,000), plus appraisal and closing — often $10,000–$20,000, usually financed into the loan. A reverse mortgage reduces the equity your heirs inherit as the balance grows with interest, and you must keep paying property taxes, insurance, and upkeep or risk default. It can also affect Medicaid or SSI: the home is usually an exempt asset, but reverse-mortgage cash sitting in the bank counts against those need-based limits — money drawn and not spent in the same month can disqualify you. If Medicaid long-term care is on the horizon, talk to an elder-law attorney before drawing funds. HUD requires independent counseling first. Not financial advice; learn more at the CFPB.