Work Hard Mortgage
Could a reverse mortgage replace your monthly mortgage payment?
See whether your equity may cover your payoff, how much cash you might need, or what funds could remain. Free to explore. No name, email, phone number or credit pull.
Your estimated reverse mortgage options
An example to explore. Change these numbers to see your situation.
- Estimated home value
- $600,000
- Mortgage payoff
- $200,000
- Estimated principal limit
- $235,200
- Estimated closing costs
- $21,500
Potentially available funds
$13,700
After the payoff, costs and entered set-asides. Up to $13,700 may be available during the first 12 months; approximately $0 of current capacity is held for later access.
If an approved HECM pays off your mortgage, required monthly principal and interest payments could stop. Taxes, insurance, maintenance and HOA dues continue. Failing to meet loan obligations can lead to foreclosure.
Assumes an adjustable HECM, 6.5% expected rate, $3,500 other costs, no younger spouse, and no required set-asides. These are dated educational assumptions, not current lender pricing, a Plaza illustration or an approval. Appraisal, financial assessment, spouse eligibility and HUD counseling are still required.
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Rates, costs, set-asides and HUD sources
Assumptions set October 17, 2026; valid for 2026 case numbers only. The 6.5% expected and note rates are illustrative choices, not a rate quote or feed. The expected rate sets borrowing capacity; the note rate drives loan growth. Future rates and property values may change, including if you wait until an older age.
Closing costs include 2% upfront FHA mortgage insurance on the lesser of home value or the $1,249,125 FHA cap, the maximum permitted origination charge (greater of $2,500 or 2% of the first $200,000 plus 1% above, capped at $6,000), and the entered other costs. The default $3,500 covers an assumed appraisal, title, recording, counseling and other third-party charges. Lender fees can be lower; local charges, prepaid property charges and final payoff can differ. No lender credit is assumed.
For this scenario: upfront insurance $12,000, origination $6,000, other costs $3,500. HUD factor 0.392 at age 70 and 6.5% expected rate, multiplied by $600,000 maximum claim amount.
Age inputs use completed years as a conservative approximation. The lender uses the youngest borrower or eligible non-borrowing spouse’s age nearest birthday at closing. Rates use the FHA Connection nearest 0.125% lookup. Ages above 99 use the age-99 row. Changing age alone holds today’s assumptions constant.
Required set-asides are unknown until lender review. Zero is an assumption, not a finding that none is required.
Enter lender-calculated reserves below if known. Repair reserve should include the required repair cushion. Split a Life Expectancy Set-Aside (LESA) into first-year property charges and the balance reserved for later years. Do not also include those amounts in other costs.
First-year availability assumes the maximum allowed additional 10% election: the greater of 60% of the principal limit or mandatory obligations plus 10%, capped by the principal limit less later-year LESA and servicing reserves. Payoffs, costs, repair reserves and first-year property charges consume this limit. Available capacity is borrowed money, not income. Later access depends on the payment plan and continuing eligibility. This tool excludes purchase loans, existing-HECM refinances, fixed-rate products and proprietary reverse mortgages.
What might remain for your family?
Illustrates paying off the mortgage and financing estimated costs. No optional cash withdrawals, later advances, servicing fees or voluntary payments are assumed.
In 10 years: $361,210 projected equity before selling costs.
Uses a constant 6.5% assumed note rate plus 0.5% annual mortgage insurance, approximated monthly. Actual adjustable rates and home values can rise or fall. Equity can be negative; this is not a prediction of an inheritance. An FHA-insured HECM is nonrecourse: eligible shortfalls do not become a personal debt of heirs under program rules.
View the chart as a table
| Year | Home value | Loan balance | Equity |
|---|---|---|---|
| 0 | $600,000 | $221,500 | $378,500 |
| 1 | $618,000 | $237,512 | $380,488 |
| 2 | $636,540 | $254,682 | $381,858 |
| 3 | $655,636 | $273,093 | $382,543 |
| 4 | $675,305 | $292,835 | $382,470 |
| 5 | $695,564 | $314,004 | $381,560 |
| 6 | $716,431 | $336,703 | $379,728 |
| 7 | $737,924 | $361,044 | $376,881 |
| 8 | $760,062 | $387,144 | $372,918 |
| 9 | $782,864 | $415,130 | $367,734 |
| 10 | $806,350 | $445,140 | $361,210 |
Have questions about your results?
We’ll help you understand your numbers, potential monthly payment changes and what could remain for your family.
Request My Reverse Mortgage ReviewA few things to know
Do I still own my home?
Yes. You keep title, subject to the mortgage lien. You must occupy the home as required, maintain it and pay taxes, insurance and other property charges. The loan generally becomes due when the last borrower dies, sells or permanently moves out, or another repayment event occurs. Eligible non-borrowing spouses may have conditional deferral protections.
Does this tell me I qualify?
No. It estimates whether borrowing capacity could cover your mortgage and assumed costs. Borrowers must be at least 62, and a lender must review finances, property eligibility, appraisal, debts, spouse circumstances and required set-asides. The home must be your principal residence. Independent HUD-approved counseling is required.
What happens to my heirs?
Heirs can generally sell the home, repay the HECM and keep remaining proceeds after selling costs. To keep the home after the loan becomes due following the last borrower’s death and any applicable spouse deferral, heirs generally may repay the lesser of the balance or 95% of current appraised value under FHA rules. Work with the servicer on deadlines and appraisal requirements; extensions are not automatic. An FHA-insured HECM is nonrecourse under program rules, so heirs are not personally liable for an eligible shortfall.
What other choices should I compare?
Keeping your mortgage, downsizing, a home equity loan or line of credit, or available assistance may fit better. HECM upfront costs can be hard to justify if you move soon. Compare total costs, property-charge obligations, benefits eligibility and estate goals with qualified advisers.
Learn more from the CFPB’s reverse mortgage guide or find an independent HUD-approved counselor.