Reverse Mortgage Payment Calculator
Enter your home value, age, mortgage balance and the principal limit factor from your lender's quote to see your net reverse mortgage proceeds and what they pay out as monthly tenure payments, fixed-term payments or a growing line of credit, using HUD's 2026 HECM rules.
Reverse mortgage payment calculator (HECM)
*Upfront costs and the old mortgage payoff grow at the note rate plus 0.5% annual FHA insurance. Real rates on adjustable HECMs change.
Where the principal limit factor comes from
HUD publishes a table of principal limit factors (PLFs) by the youngest borrower's age and the expected interest rate. Older borrowers and lower rates get higher factors. Your lender quote, or HUD's own HECM calculator, gives the factor for your age and today's rate. We don't guess it, because it changes with rates every week. Multiply it by your home value (up to the 2026 limit of $1,249,125) to get your principal limit.
How the payments are worked out
- Net principal limit = principal limit − 2% upfront FHA mortgage insurance − origination fee − other closing costs − any mortgage you still owe (it must be paid off from the loan).
- Tenure payment (monthly for as long as you live in the home): HUD's method spreads the net principal limit over the months until the youngest borrower turns 100, at the expected rate plus the 0.5% annual insurance premium, paid at the start of each month.
- Term payment: the same calculation over a fixed number of years you choose. Payments are larger but stop at the end of the term; the loan doesn't come due until you leave the home.
- Line of credit: any unused credit line grows each month at the note rate plus 0.5%, so an untouched line is larger later.
- First-year limit: in the first 12 months you can generally take the greater of 60% of the principal limit or your required payoffs plus 10%.
2026 HECM rules at a glance
| Rule | 2026 |
|---|---|
| Maximum claim amount | $1,249,125 (HUD Mortgagee Letter 2025-22) |
| Upfront mortgage insurance | 2% of the maximum claim amount |
| Annual mortgage insurance | 0.5% of the loan balance |
| Origination fee cap | Greater of $2,500 or 2% of the first $200,000 of value plus 1% above that, never over $6,000 |
| Minimum age | 62 |
| Required | HUD-approved counseling before you apply; you keep paying property tax, insurance and upkeep |
A reverse mortgage comes due when the last borrower dies, sells or moves out for more than 12 months in a row. You or your heirs never owe more than the home is worth when it's sold (it's a non-recourse loan).
Common questions
How much will I get from a reverse mortgage?
Your home value (up to $1,249,125 in 2026) × the HUD principal limit factor for your age and the expected rate, minus upfront costs and any mortgage you still owe. Enter your lender's factor above to see the net amount.
How are reverse mortgage monthly payments calculated?
HUD spreads the net principal limit over the months until the youngest borrower would be 100, at the expected rate plus 0.5% insurance. That's the tenure payment.
What is the 2026 reverse mortgage limit?
The 2026 HECM maximum claim amount is $1,249,125, up from $1,209,750 in 2025.
Do I have to make monthly payments on a reverse mortgage?
No mortgage payments are required, but you must keep paying property taxes, homeowners insurance and upkeep, or the loan can come due.
Is a reverse mortgage line of credit better than monthly payments?
It depends on your needs. Unused credit grows over time, which gives flexibility; tenure payments give a steady income for as long as you live in the home.
Sources
- HUD Mortgagee Letter 2017-12: HECM mortgage insurance premiums and principal limit factors
- Consumer Finance Monitor: HUD 2026 FHA and HECM loan limits (Mortgagee Letter 2025-22)
- eCFR: 24 CFR Part 206, Home Equity Conversion Mortgage insurance (origination fee, payment plans)
- Retirement Researcher: How HECM tenure payments are calculated
- Consumer Financial Protection Bureau: Reverse mortgages
Related
General information, not financial, tax or legal advice. Check important numbers with the official source before acting on them.