Reverse mortgage amortization calculator
A HECM is the FHA-insured reverse mortgage for homeowners 62 and older. See what one would owe year by year, and how an unused credit line grows.
Would you like a lender to run these figures for your home? Speak with a reverse mortgage specialist. We are not a lender: the line connects you with reverse mortgage lenders and brokers who can quote your home.
The way a reverse mortgage amortization schedule shows your balance climbing
With a HECM you don't send in a payment each month, so the debt doesn't drop. Each month your balance picks up the interest plus a 0.5% yearly FHA mortgage insurance charge, and the next month's interest is calculated from that larger amount. That's why what you owe climbs more quickly in later years.
That same growth pattern turns into an advantage for the funds you don't draw. The unused portion of a HECM credit line grows at the same pace as the loan, so a line you open at 62 and don't draw on can be a lot bigger by 75.
How the balance climbs on a $400,000 home
| Years after closing | Owed, starting at 62 | Owed, starting at 70 | Owed, starting at 78 | Equity left, starting at 70 |
|---|---|---|---|---|
| At closing | $73,680 | $87,600 | $101,520 | $312,400 |
| Year 5 | $101,886 | $121,135 | $140,384 | $278,865 |
| Year 10 | $140,890 | $167,507 | $194,125 | $232,493 |
| Year 15 | $194,825 | $231,632 | $268,439 | $168,368 |
| Year 20 | $269,407 | $320,305 | $371,202 | $79,695 |
At 70, the balance after 20 years would be about $320,305. If the home were still worth $400,000, about $79,695 of equity would remain, and any rise in value adds to that.
How an unused credit line grows
| Years after closing | Line, opened at 62 | Line, opened at 70 | Line, opened at 78 |
|---|---|---|---|
| At closing | $105,800 | $129,000 | $152,200 |
| Year 5 | $146,302 | $178,383 | $210,465 |
| Year 10 | $202,309 | $246,672 | $291,034 |
| Year 15 | $279,756 | $341,102 | $402,447 |
| Year 20 | $386,852 | $471,682 | $556,511 |
What these numbers assume
- A 6% rate, which was the median on HECMs HUD insured in August 2026. The rate your lender offers might be different, and an adjustable rate changes over time.
- You're allowed to take as much as 60% of your principal limit during the first 12 months. That amount, which already counts the upfront costs, is the starting point for the "most allowed" figures.
- When the last borrower passes away, sells or leaves the house for over 12 months, the loan must be repaid. The debt will never exceed the home's value at sale for you or your heirs: check what happens after death.
Before you sign
- A session with a HUD-approved counselor comes first for every HECM. The counselor works for no lender and can run these numbers with you.
- Nobody should rush you, or ask you to put the loan money into an annuity, insurance or an investment. That is a warning sign of a scam.
To see the cash you could receive today, begin with the reverse mortgage estimate. When you're buying a new home through a HECM, go to the HECM for purchase calculator. The rates we used: current reverse mortgage rates.