A reverse mortgage lets homeowners 62 and older turn part of their equity into funds, with no required monthly mortgage payment. Get a rough range, then talk it through.
The range uses an approximate principal limit table and the 2026 HECM limit of $1,249,125. HUD sets the real factors by age and expected rate, so treat this as a ballpark. Upfront mortgage insurance is estimated at 2% of the home value up to that limit.
Illustrative funds available
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Rough illustration only, not a quote. Actual proceeds depend on the youngest borrower's age, the expected rate, the home appraisal and costs. Any existing mortgage is paid off first. Taxes, insurance and upkeep remain your responsibility.
Both use home equity. They work very differently.
| Feature | Reverse mortgage (HECM) | HELOC |
|---|---|---|
| Who qualifies | At least one borrower 62 or older, primary residence | Any age, with income and credit review |
| Monthly payment | No required mortgage payment. Taxes, insurance and upkeep still due | Required payments, often interest only at first |
| Repayment | When the last borrower leaves, sells or passes away | Over the loan term |
| Counseling | HUD-approved counseling required | Not required |
| Upfront cost | Higher, includes FHA mortgage insurance | Often lower |
| Rate | Fixed or adjustable | Usually variable |
Costs and duties
Costs are higher than many loans. Plan for the ongoing duties before you decide.
You keep title. The loan can become due if you stop paying taxes, insurance or upkeep, or no longer live there as your primary home.
They can repay the lesser of the balance or 95% of the appraised value and keep the home, sell it and keep any extra, or hand it over. The loan is non-recourse.
Proceeds are loan funds, not income. They generally do not affect Social Security or Medicare, but can affect needs-based benefits. Check with an advisor.
Eligible non-borrowing spouses can have protections, with conditions. Ask for specifics.
Yes. The HECM for Purchase program pairs a large down payment with the reverse mortgage.
It is a ballpark only. HUD tables use the youngest borrower's age and the expected rate. Duane can run a proper quote.
Duane Buziak, NMLS #1110647. Licensed in VA, FL, TN, GA, NC, SC, MD, DC, WV, TX and KY. Brokered through Coast2Coast Mortgage, NMLS #376205. Verify licenses at nmlsconsumeraccess.org. For illustration only. Not a loan offer, commitment or rate quote. Equal Housing Opportunity.