HECM Calculator
Estimate your Home Equity Conversion Mortgage principal limit — the FHA-insured reverse mortgage for homeowners 62+. Instant results, no personal info required.
Nate Jones · NMLS #304056 · New American Funding
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Quick context from Nate before you run your HECM numbers.
A HECM (Home Equity Conversion Mortgage) is the FHA-insured reverse mortgage program for homeowners 62 and older. The amount you can borrow — the Principal Limit — is calculated by multiplying the lesser of your home value or the 2026 FHA lending limit ($1,249,125) by a HUD Principal Limit Factor that rises with age: roughly 40% at 62, 48% at 70, 56% at 80, and 63% at 90+ at typical rates. Payout options include a lump sum, a growing line of credit, or monthly tenure/term payments. HECMs are non-recourse — you or your heirs never owe more than the home's value. Nate Jones (NMLS #304056) offers HECMs through New American Funding nationwide — free estimate, no credit pull.
Your Numbers
Enter $0 if your home is paid off
Must be 62 or older to qualify
Current reverse mortgage rates typically range 6.5-8.5%
Results
Estimated Available Cash
$220,000
Tax-free. No monthly payments required.
Your Home's Principal Limit
$220,000
Maximum FHA will lend based on your age and home value
Equity You Keep
$280,000
Remaining equity stays in your estate
Monthly Payment Required
$0
You never make a mortgage payment. Loan repaid when home is sold.
What Could You Do With This Equity?
Eliminate Monthly Payments
Use $220,000 to pay off your existing mortgage entirely — eliminating your monthly payment and freeing up $0 every month.
Monthly Income Stream
Receive approximately $1,833 per month for 10 years as a steady tax-free income stream.
Line of Credit
Keep $220,000as a growing line of credit — accessible when you need it, growing at the loan interest rate when you don't.
These are estimates based on simplified HECM guidelines. Actual amounts depend on current interest rates, your specific property, and FHA appraisal. Nate will run your exact numbers — free, no credit pull.
What Is a Home Equity Conversion Mortgage?
HECM — Home Equity Conversion Mortgage — is the official HUD name for the FHA-insured reverse mortgage. If you've searched "HECM calculator," "FHA reverse mortgage calculator," or "HUD reverse mortgage calculator," you're looking at the same program: homeowners 62 or older convert home equity into tax-free proceeds with no required monthly mortgage payment, full non-recourse protection, and mandatory HUD counseling before closing. The calculator above estimates your Principal Limit — the core number every HECM quote is built on.
HECM Age Chart — How Much Can You Access by Age?
HUD's Principal Limit Factors rise with the youngest borrower's age. Here's the approximate share of home value accessible at typical 2026 rates, with the dollar figure on a $500,000 home:
| Age of Youngest Borrower | Approx. Principal Limit Factor | On a $500,000 Home |
|---|---|---|
| 62–64 | ~40% | $200,000 |
| 65–69 | ~44% | $220,000 |
| 70–74 | ~48% | $240,000 |
| 75–79 | ~52% | $260,000 |
| 80–84 | ~56% | $280,000 |
| 85–89 | ~60% | $300,000 |
| 90+ | ~63% | $315,000 |
Approximate factors at typical 2026 expected rates; HUD's exact PLF also varies with the loan's expected interest rate. Existing mortgage balances are paid off from proceeds first. Nate runs exact HUD factors free of charge.
How the HECM Principal Limit Is Calculated
Principal Limit = min(Home Value, $1,249,125) × Principal Limit Factor
Example: a 74-year-old with a $600,000 home at a ~48% factor has a principal limit of about $288,000. If they owe $100,000 on an existing mortgage, that's paid off first — leaving roughly $188,000 available as cash, a line of credit, or monthly payments.
Above the $1,249,125 FHA limit, the HECM formula stops counting additional value — that's where a jumbo reverse mortgage takes over.
Related Calculators & Guides
HECM Calculator FAQ
Common Questions
How much can I access with a HECM?
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Is a HECM the same as a reverse mortgage?
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