How Reverse Mortgage Monthly Payments Work
A Home Equity Conversion Mortgage (HECM) is an FHA-insured reverse mortgage that allows homeowners 62+ to convert home equity into monthly income without selling or making mortgage payments. The tenure payment plan provides fixed monthly payments for as long as you live in the home.
Approximate Monthly Payments by Age ($500,000 home)
| Age | Est. Monthly Payment | Est. Annual Total |
|---|---|---|
| 62 | ~$900 | ~$10,800 |
| 65 | ~$1,100 | ~$13,200 |
| 70 | ~$1,500 | ~$18,000 |
| 75 | ~$2,000 | ~$24,000 |
| 80 | ~$2,750 | ~$33,000 |
Monthly payment amounts depend on age, home value (capped at FHA lending limit), and current interest rates. Older borrowers receive higher payments because the loan is expected to be repaid sooner. This calculator uses approximate tenure plan rates — actual amounts require a formal HECM quote from an FHA-approved lender.
Frequently Asked Questions
With the tenure plan, you continue receiving payments as long as you live in the home — even if total payments exceed the home's value. FHA insurance protects both you and the lender in this scenario.
No. HECM payments are considered loan proceeds, not income, so they are generally not taxable. They also do not affect Social Security or Medicare eligibility. Consult a tax advisor for your specific situation.