Real Estate & Mortgage
Reverse Mortgage (HECM)
Estimate the principal limit and growing loan balance of a Home Equity Conversion Mortgage.
Your inputs
Change any value to update the result instantly.
Initial principal limit
2,00,000
Borrower age
72
Projected balance in 10 yrs
4,12,206.3124
Remaining equity (est.)
1,25,360.2393
Simplified estimate; actual HECM limits depend on HUD tables, age of the youngest borrower and current interest rates.
Growing loan balance over time
| Period | Input / invested | Calculated value |
|---|---|---|
| 1 | 2,00,000 | 2,15,000 |
| 2 | 2,00,000 | 2,31,125 |
| 3 | 2,00,000 | 2,48,459.375 |
| 4 | 2,00,000 | 2,67,093.8281 |
| 5 | 2,00,000 | 2,87,125.8652 |
| 6 | 2,00,000 | 3,08,660.3051 |
| 7 | 2,00,000 | 3,31,809.828 |
| 8 | 2,00,000 | 3,56,695.5651 |
| 9 | 2,00,000 | 3,83,447.7325 |
| 10 | 2,00,000 | 4,12,206.3124 |
Formula and working
Principal limit ≈ home value × age/rate-based factor; balance grows by the loan rate plus MIP each year
- 1
Collect the inputs
Home value = 400,000; Youngest borrower age = 72; Expected loan rate = 7 %; Principal limit factor = 50 %; Projection horizon (years) = 10 years
- 2
Apply the formula
Principal limit ≈ home value × age/rate-based factor; balance grows by the loan rate plus MIP each year
- 3
Result
Initial principal limit = 200,000
Frequently asked questions
Important limitation
This is an educational estimate based only on the values and formula shown. Verify current rates, rules, units, and professional standards before relying on the result. It is not personalized financial or investment advice.
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