Reverse Mortgage Monthly Payment Calculator
See how much a reverse mortgage could pay you every month — a tenure check for as long as you live in the home, or a larger term payment for a fixed number of years.
Nate Jones · NMLS #304056 · New American Funding
From Nate · 28 sec
Want a monthly check instead of a lump sum?
Quick context from Nate before you run your payment numbers.
A reverse mortgage can pay homeowners 62+ a fixed monthly amount instead of a lump sum. Two plans exist: tenure payments continue for as long as the borrower lives in the home (calculated like an annuity to age 100 but guaranteed for life in the home), while term payments are larger but run for a fixed number of years chosen by the borrower. Payments are tax-free loan advances, don't affect Social Security or Medicare, and no monthly mortgage payment is owed. Payment size depends on the youngest borrower's age, home value (capped at the 2026 FHA limit of $1,149,825), current rates, and any existing mortgage payoff. Nate Jones (NMLS #304056) quotes exact tenure and term payments through New American Funding — free, no credit pull.
Your Numbers
Paid off first from your proceeds — enter $0 if your home is paid off
Must be 62 or older
Only affects the term payment — the tenure payment always runs as long as you live in the home
Your Monthly Payment Options
Tenure Payment — For Life in the Home
$1,384/mo
Tax-free, every month, for as long as you live in the home — even past age 100.
Term Payment — 10 Years
$2,350/mo
A larger check for a fixed 10-year window, then payments stop (you stay in the home).
Where these numbers come from
Available principal of $198,000 (after paying off your current mortgage), converted to a monthly annuity under HECM payment rules.
Estimates based on simplified HECM payment formulas. Actual tenure and term payments depend on current expected rates, your exact age, and the FHA appraisal. Nate runs your real payment schedule — free, no credit pull.
How Your Monthly Payment Is Calculated
Three steps, no mystery. First, your principal limit — the total you can borrow — comes from the youngest borrower's age, current rates, and your home value (capped at the FHA lending limit of $1,149,825 for 2026). Second, any existing mortgage is paid off from that limit. Third, what's left is converted into a monthly annuity: for a tenure plan the formula runs to age 100, and for a term plan it runs over the years you choose — fewer years, bigger check.
Two details people miss: your tenure payment doesn't stop at 100 — the formula just uses that age, and the checks keep coming for as long as you live in the home. And your payment is fixed once it starts — rate changes affect the loan balance, never the check.
Tenure vs Term vs Line of Credit
| Plan | Check Size | How Long | Best For |
|---|---|---|---|
| Tenure | Smaller | Life in the home | Permanent baseline income |
| Term | Larger | Years you choose | Bridging to Social Security or a pension |
| Line of credit | Draw as needed | Until exhausted (grows if unused) | Emergency fund, flexibility |
| Modified | Your mix | Payment + credit line | Income now, cushion later |
The strategy Nate quotes most often is the modified plan: enough monthly income to close the gap in your budget, with the remainder growing in a line of credit. You can switch plans later for a small administrative fee — you are not locked in on day one.
Related Calculators & Guides
Reverse Mortgage Monthly Payment FAQ
Common Questions
How much would a reverse mortgage pay me per month?
Nate answers in 90 seconds
Tenure or term — which fits my situation?
Nate answers in 90 seconds
Talk to Nate
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