How a HECM reverse mortgage is sized
A Home Equity Conversion Mortgage is the FHA-insured reverse mortgage available to homeowners age 62 and over. How much you can draw starts with the maximum claim amount, which is the lesser of the appraised home value and the FHA lending limit. That figure is then multiplied by a principal limit factor published by HUD, which rises with the age of the youngest borrower and falls as the expected interest rate rises.
From the principal limit the lender subtracts the upfront mortgage insurance premium, any existing mortgage that must be paid off at closing, and origination and closing costs. What remains is what you can actually access. This calculator walks through those steps and then divides the net proceeds by the number of months you enter, which gives a planning figure for a monthly draw.
Figures are on a 2026 basis. The FHA lending limit changes each year and the PLF tables are revised by HUD, so both are fields you fill in rather than fixed constants. A genuine tenure payment is an actuarial amount designed to last while you live in the home, not a simple division, and interest plus the annual insurance premium accrue on the balance the whole time. Counseling from a HUD-approved agency is required before you apply, and the numbers here are an estimate rather than a loan quote.
Frequently asked questions
HUD publishes the PLF tables used for HECM loans, and the factor depends on the age of the youngest borrower and the expected interest rate at closing. Your lender pulls the exact figure, so ask for it or look it up in the current HUD table rather than guessing.
Not exactly. A true HECM tenure payment is an actuarial amount calculated to last as long as you live in the home, based on the youngest borrower reaching age 100. This tool divides the available principal by the number of months you enter, which is a useful planning figure but not a lender quote.
Yes. With a HECM you keep title and can stay as long as the home is your principal residence and you keep up property taxes, insurance and maintenance. Falling behind on those obligations can trigger a maturity event.