Reverse Mortgage Calculator
This reverse mortgage calculator estimates HECM proceeds for a Florida homeowner aged 62 or older, after any existing mortgage is repaid.
By Onias Derilus, Mortgage Capital · NMLS# 1859012 · Last Updated: June 2026
ROUGH ESTIMATE ONLY. Actual HECM principal limit factors are set by HUD from the borrower age and the expected rate, and are not a simple formula. This approximates the shape of the answer. Get a real quote and HUD-approved counseling before relying on any figure.
A HECM reverse mortgage lets a homeowner aged 62 or older convert equity to cash with no monthly principal and interest payment. The balance grows over time and is repaid when the home is sold or the last borrower leaves.
Any existing mortgage must be paid off first from the proceeds. That mandatory payoff is why a homeowner with a large remaining balance may see little or nothing available.
These figures are estimates. For neutral, official guidance on mortgage costs and what lenders can charge, see the CFPB's Owning a Home guide.
How to Use This Calculator
- 1
Enter the age of the youngest borrower — the factor is driven by the youngest, not the oldest.
- 2
Enter the home value and any existing mortgage balance.
- 3
Enter an expected rate and estimated closing costs including the initial mortgage insurance premium.
- 4
Read the estimated availability, then treat it as a starting point for a real quote.
The Formula & Assumptions
Value used = lesser of value
and the HECM limit
Principal limit = value used
× principal limit factor
Available = principal limit
− existing mortgage
− closing costs
This is an approximation. Real principal limit factors come from HUD tables indexed to borrower age and expected rate, and they do not follow a simple formula. Treat the output as a rough shape rather than a quote.
You remain responsible for property taxes, homeowners insurance and upkeep. Falling behind on those can trigger default even with no mortgage payment, and in Florida the insurance obligation is not trivial.
HUD requires independent counseling from an approved agency before a HECM can close. That session is the right place to weigh the alternatives — downsizing, a HELOC, or a home equity loan — against a reverse mortgage.
Frequently Asked Questions
What age qualifies for a reverse mortgage?
HECM requires the youngest borrower to be at least 62. Some proprietary reverse mortgage products start at 55 in certain states, but they carry different terms and are not FHA-insured.
Do I still own the home?
Yes. You hold title and can sell at any time. The loan is repaid from the proceeds when the home sells or the last borrower permanently leaves, and any remaining equity belongs to you or your heirs.
What if the balance grows past the home value?
HECM is non-recourse. Neither you nor your heirs owe more than the home is worth at repayment, and FHA insurance covers the shortfall. That protection is a large part of what the mortgage insurance premium buys.
Why is my available amount lower than I expected?
The existing mortgage must be repaid first, closing costs come out of the proceeds, and the principal limit factor is well below 100% of value — younger borrowers and higher rates both reduce it further.
Ready to Turn Your Estimate Into a Real Pre-Approval?
Get a personalized rate quote and pre-approval from a licensed Florida mortgage broker — no obligation.
Rates are illustrative only. APR and payments vary by credit score, loan amount, and market conditions. Subject to credit approval. Not a commitment to lend. NMLS# 1859012. Equal Housing Lender.