Reverse Mortgage Calculator

ESTIMATED NET AVAILABLE

$258,960

A principal limit of about $290,160, which is roughly 40.3% of the $720,000 maximum claim amount at age 72, less about $31,200 of upfront costs. In the first year you could take at most $142,896 of it.

This figure is an estimate of the factor, not the factor itself. HUD publishes a principal limit factor for every age from 62 to 90 at every eighth of a percent of expected rate. This page approximates that table, calibrated against published examples, and can be out by a few percentage points. Nobody should sign anything on the strength of it — a lender running the actual grid will give you the real number in about twenty minutes, at no cost.

The balance would pass the home value at about 21y 4m. That sounds alarming and mostly is not, because the loan is non-recourse: whatever the balance says, the debt is settled at the sale price and the insurance absorbs the rest. Neither you nor your heirs can be pursued for the shortfall. What it does mean is that after that point the house is no longer an asset the estate will inherit anything from.

Things this page does not model, which matter. A life expectancy set-aside may be carved out of your proceeds if the lender doubts the taxes and insurance will be paid, which reduces what you receive. Means-tested benefits such as Medicaid and Supplemental Security Income can be affected by holding the money, though Social Security and Medicare are not. Moving out for more than twelve months, including into long-term care, makes the loan due. And a non-borrowing spouse under 62 has protections that depend on paperwork being right at closing — that one is worth raising explicitly with the counsellor.