Reverse Mortgage Calculator
Estimate your reverse mortgage payout, monthly payments, and available home equity instantly. Based on your age, home value, and current interest rates.
Reverse Mortgage Estimator
Calculate your potential loan amount and payout options
Current market value of the property (or FHA lending cap: £726,525 / $726,525)
Must be 62 or older for a HECM reverse mortgage
Current expected rate for reverse mortgages
Origination fee, appraisal, MIP, title, and other closing costs (typically £5k–£12k)
Remaining balance on any existing mortgage that must be paid off
Estimate Results
Reverse mortgage payout & principal limit
Enter your home value, age, and interest rate, then click Calculate to see your estimated reverse mortgage payout.
Principal Limit Factor by Age
Approximate HECM principal limit factors (PLF) based on the age of the youngest borrower and expected interest rate. The PLF determines the maximum percentage of home value available to the borrower.
| Age | PLF @ 4% | PLF @ 6% | PLF @ 8% | £350k Home — Available at 6% |
|---|---|---|---|---|
| 62 | 37.3% | 31.2% | 26.5% | £109,200 |
| 65 | 40.1% | 34.0% | 29.1% | £119,000 |
| 70 | 45.2% | 39.4% | 34.3% | £137,900 |
| 75 | 50.8% | 45.2% | 40.0% | £158,200 |
| 80 | 56.4% | 51.0% | 45.8% | £178,500 |
| 85 | 62.1% | 56.8% | 51.6% | £198,800 |
| 90 | 67.4% | 62.2% | 57.0% | £217,700 |
| 95+ | 72.5% | 67.4% | 62.2% | £235,900 |
Reverse Mortgage FAQ
Everything you need to know about reverse mortgages, HECM loans, and home equity conversion.
A reverse mortgage is a loan available to homeowners aged 62 or older that allows them to convert part of their home equity into cash. Unlike a traditional mortgage, the borrower does not make monthly payments. The loan, plus accrued interest and fees, is repaid when the borrower sells the home, moves out permanently, or passes away. The most common type is the HECM (Home Equity Conversion Mortgage), insured by the FHA in the United States.
The amount you can borrow is based on a Principal Limit Factor (PLF), which is determined by the age of the youngest borrower, the expected interest rate, and the home’s appraised value (or the FHA lending limit, whichever is lower). The formula is: Principal Limit = Home Value × PLF. Older borrowers and lower interest rates result in a higher PLF, meaning more equity is accessible.
In the United States, the minimum age for a HECM reverse mortgage is 62. In the UK, equity release products typically require borrowers to be at least 55. All borrowers listed on the home’s title must meet the minimum age requirement. If a spouse is younger than the minimum, they may not be eligible to be included in the loan.
Yes. You retain the title and ownership of your home throughout the loan. You are responsible for paying property taxes, maintaining homeowners insurance, and keeping the home in good repair. The lender holds a lien on the property until the loan is repaid. Failure to meet these obligations can trigger loan default.
Borrowers can choose from several disbursement options: a lump sum (single payment), tenure payments (equal monthly payments for as long as you live in the home), term payments (equal monthly payments for a fixed number of years), a line of credit (draw funds as needed, with unused balance growing over time), or a combination of these. The choice affects how much you can access upfront.
Typical costs include an origination fee, an upfront mortgage insurance premium (MIP) of 2% of the home value for HECMs, closing costs (appraisal, title, escrow), and ongoing annual servicing fees. Most of these costs are financed into the loan rather than paid out of pocket, which reduces your net principal limit.
The loan becomes due and payable when the last surviving borrower dies, sells the home, or fails to meet loan obligations such as paying property taxes and insurance, or maintaining the home as a primary residence for 12 consecutive months. Heirs typically repay the loan by selling the home or refinancing. With a HECM, you will never owe more than the home’s value at the time of repayment (non-recourse feature).
A reverse mortgage can be a useful tool for retirees who are house-rich but cash-poor, particularly for supplementing retirement income, covering healthcare costs, or ageing in place. However, it reduces the equity you leave to heirs, accrues interest over time, and comes with significant upfront fees. It is strongly recommended to speak with a HUD-approved counsellor or a qualified financial adviser before proceeding.