Reverse Mortgage (HECM) Calculator
For a $400,000 home, age 68, a $160,000 assumed draw and no existing mortgage payoff, the calculator estimates $16,000 in upfront costs: $6,000 origination, $8,000 initial insurance and $2,000 assumed third-party costs. That leaves $144,000 cash. The draw is an example, not an estimate of your borrowing limit; enter a lender or counselor quote below.
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Additional Details
Additional Details
Pre-filled: NAIC countrywide HO-3 average premium (data for 2023)
Maximum Claim Amount (Capped at Nationwide HECM Limit)
Estimated • Based on your inputs
Total Upfront Costs
$16,000.00
Net Cash Available After Costs & Payoff
$144,000.00
Projected Loan Balance After Your Projection Period
$346,430.00
Projected Remaining Home Equity
$191,137.00
Detailed Breakdown
Disclaimer: This calculator provides estimates for informational purposes only. Results should not be considered financial, tax, or legal advice. Consult a qualified professional for your specific situation.
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Explore a mortgage payment estimate, refinance calculator, or comparison of reverse mortgages and other ways to use home equity. The Consumer Financial Protection Bureau's reverse mortgage guide explains factors affecting borrowing and ongoing obligations.
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How this calculator works
A HECM is a federal FHA program, so its cost rules are the same in every state. Maximum Claim Amount is the home value capped at the nationwide HECM limit ($1,249,125 for 2026, FHA's national one-family limit under 24 CFR 206.3). The origination fee follows 24 CFR 206.31(a)(1): the greater of $2,500 or 2% of the first $200,000 of the Maximum Claim Amount plus 1% above that, capped at $6,000. The initial mortgage insurance premium is 2% of the Maximum Claim Amount (24 CFR 206.105 caps it at 3%). The balance grows monthly at your expected rate plus the 0.5% annual premium; remaining equity is floored at $0 because HECMs are non-recourse. The calculator does not estimate HUD's principal limit, which comes from actuarial tables; enter the draw a HECM counselor or lender quotes you.
Source: 24 CFR Part 206; FHFA CY2026 conforming loan limit announcement; NAIC Homeowners Report checked
What you keep paying with a HECM, by state
Property tax and homeowners insurance stay your responsibility for the life of a HECM (24 CFR 206.27). Estimates use each state's median home value, property tax rate and insurance premium. Monthly equivalents divide annual costs by 12; actual bills may be due on a different schedule.
| State | Median home value | Above the $1,249,125 limit? | Property tax rate | HO-3 premium | Tax + insurance per year | Monthly equivalent |
|---|---|---|---|---|---|---|
| Alabama | $242,000 | No | 0.37% | $1,906 | $2,801 | $233 |
| Alaska | $401,000 | No | 0.94% | $1,216 | $4,985 | $415 |
| Arizona | $423,000 | No | 0.48% | $1,194 | $3,224 | $269 |
| Arkansas | $229,000 | No | 0.56% | $1,870 | $3,152 | $263 |
| California | $776,000 | No | 0.7% | $1,655 | $7,087 | $591 |
| Colorado | $543,000 | No | 0.5% | $2,492 | $5,207 | $434 |
| Connecticut | $455,000 | No | 1.54% | $2,036 | $9,043 | $754 |
| Delaware | $412,000 | No | 0.54% | $1,196 | $3,421 | $285 |
| Florida | $378,000 | No | 0.78% | $2,779 | $5,727 | $477 |
| Georgia | $335,000 | No | 0.79% | $1,828 | $4,475 | $373 |
| Hawaii | $837,000 | No | 0.29% | $1,549 | $3,976 | $331 |
| Idaho | $482,000 | No | 0.5% | $1,135 | $3,545 | $295 |
| Illinois | $299,000 | No | 1.88% | $1,480 | $7,101 | $592 |
| Indiana | $262,000 | No | 0.76% | $1,259 | $3,250 | $271 |
| Iowa | $241,000 | No | 1.33% | $1,342 | $4,547 | $379 |
| Kansas | $253,000 | No | 1.21% | $1,733 | $4,794 | $400 |
| Kentucky | $235,000 | No | 0.74% | $1,525 | $3,264 | $272 |
| Louisiana | $218,000 | No | 0.55% | $3,027 | $4,226 | $352 |
| Maine | $424,000 | No | 0.98% | $1,150 | $5,305 | $442 |
| Maryland | $436,000 | No | 0.92% | $1,578 | $5,589 | $466 |
| Massachusetts | $673,000 | No | 1% | $2,134 | $8,864 | $739 |
| Michigan | $270,000 | No | 1.19% | $1,110 | $4,323 | $360 |
| Minnesota | $357,000 | No | 1% | $1,988 | $5,558 | $463 |
| Mississippi | $198,000 | No | 0.58% | $2,029 | $3,177 | $265 |
| Missouri | $272,000 | No | 0.89% | $1,589 | $4,010 | $334 |
| Montana | $476,000 | No | 0.61% | $1,768 | $4,672 | $389 |
| Nebraska | $284,000 | No | 1.44% | $2,142 | $6,232 | $519 |
| Nevada | $448,000 | No | 0.5% | $1,013 | $3,253 | $271 |
| New Hampshire | $523,000 | No | 1.5% | $1,300 | $9,145 | $762 |
| New Jersey | $585,000 | No | 1.88% | $1,551 | $12,549 | $1,046 |
| New Mexico | $321,000 | No | 0.63% | $1,490 | $3,512 | $293 |
| New York | $526,000 | No | 1.3% | $1,801 | $8,639 | $720 |
| North Carolina | $340,000 | No | 0.66% | $1,852 | $4,096 | $341 |
| North Dakota | $294,000 | No | 0.92% | $1,414 | $4,119 | $343 |
| Ohio | $252,000 | No | 1.36% | $1,116 | $4,543 | $379 |
| Oklahoma | $225,000 | No | 0.79% | $2,486 | $4,264 | $355 |
| Oregon | $504,000 | No | 0.81% | $1,003 | $5,085 | $424 |
| Pennsylvania | $294,000 | No | 1.26% | $1,217 | $4,921 | $410 |
| Rhode Island | $517,000 | No | 1.12% | $2,396 | $8,186 | $682 |
| South Carolina | $309,000 | No | 0.49% | $1,753 | $3,267 | $272 |
| South Dakota | $326,000 | No | 1% | $1,614 | $4,874 | $406 |
| Tennessee | $339,000 | No | 0.52% | $1,649 | $3,412 | $284 |
| Texas | $303,000 | No | 1.4% | $2,864 | $7,106 | $592 |
| Utah | $542,000 | No | 0.48% | $1,107 | $3,709 | $309 |
| Vermont | $402,000 | No | 1.51% | $1,215 | $7,285 | $607 |
| Virginia | $420,000 | No | 0.78% | $1,537 | $4,813 | $401 |
| Washington | $603,000 | No | 0.75% | $1,232 | $5,755 | $480 |
| West Virginia | $183,000 | No | 0.51% | $1,179 | $2,112 | $176 |
| Wisconsin | $342,000 | No | 1.32% | $923 | $5,437 | $453 |
| Wyoming | $373,000 | No | 0.53% | $1,853 | $3,830 | $319 |
Median value: Zillow ZHVI, June 2026. Property tax: Tax Foundation effective rate on owner-occupied housing. Insurance: NAIC average HO-3 premium, data for 2023.
Frequently Asked Questions
Is a reverse mortgage different from state to state?
The HECM rules are federal: the age-62 minimum, the fee formula, the insurance premium and the 2026 limit apply everywhere. What differs by state is what you keep paying while you have the loan, property tax and homeowners insurance (24 CFR 206.27), and your home's value. The table below shows both for each state's median-priced home.
Why doesn't this calculator say how much I can borrow?
HUD sets the amount available with Principal Limit Factor tables by exact age and expected rate, published with its Mortgagee Letters. Rather than approximate them, the calculator asks for the draw your counselor or lender quotes and computes everything else from the regulation.
How much can I get from a HECM?
The amount you can borrow depends on your age, interest rate and home value. This calculator does not determine the principal limit: enter a draw from a lender or counselor, or use a what-if amount. A negative cash result means the assumed draw does not cover the entered costs and mortgage payoff.
What changes the estimate?
Home value changes the modeled origination fee and initial insurance; your draw, closing costs and mortgage payoff change the cash remaining. The interest rate and projection period change the projected balance, while the appreciation assumption changes projected home value.
What are the monthly and yearly property costs?
For the example above, estimated property tax and insurance total $5,737 per year, or about $478 per month when divided evenly. These are ongoing property costs, not a reverse mortgage payment. The state table uses the same calculation for each state.
Can I use this for a home purchase or a proprietary reverse mortgage?
This calculator models HECM costs and a balance projection for the inputs entered. It does not calculate a purchase transaction, required purchase funds or the terms of a proprietary reverse mortgage. Obtain a product-specific quote for those comparisons.
Can my heirs owe more than the home is worth?
No. HECMs are non-recourse: if the balance passes the home's value, FHA insurance covers the difference, which is why projected remaining equity never goes below $0 here.