Reverse Mortgage HECM Calculator
Estimate available equity funds from a Home Equity Conversion Mortgage (HECM) for homeowners age 62+. Compare lump sum payouts, lines of credit, or tenure monthly payouts.
HECM Equity Assessment
Net Cash Available to You
10-Year Line of Credit Growth Forecast
Unlike W2 home equity loans, an unused HECM line of credit grows annually at the note rate + MIP (simulated at rate + 0.5%).
Frequently Asked Questions
What is a Reverse Mortgage (HECM)?
A Home Equity Conversion Mortgage (HECM) is a federal reverse mortgage program backed by the FHA. It enables seniors aged 62+ to convert part of their home equity into cash without monthly mortgage payments, provided they continue paying property taxes, homeowners insurance, and maintain the home.
Do I have to pay off my existing mortgage first?
Yes. The HECM loan must be in the first lien position. Any existing mortgage balance or lien must be paid off during closing, which is typically funded by the gross proceeds of the reverse mortgage itself.
How does the Line of Credit growth work?
Unused portions of your HECM line of credit increase in size over time. The growth rate equals the interest rate plus the annual mortgage insurance premium (MIP) rate. This is not interest earned, but rather an increase in your borrowing capacity.
When must the reverse mortgage be repaid?
The loan becomes due and payable when the last remaining borrower passes away, sells the home, or moves out permanently (typically for more than 12 consecutive months).