A reverse mortgage can pay you every month, for life in the home or for a set number of years. Estimate yours from HUD’s own table, without giving anyone your details.
Instead of a lump sum or a line of credit, a reverse mortgage can pay you a fixed amount every month. With a tenure plan the payments last for as long as you live in the home, even if the loan balance eventually passes what you could have borrowed (unless they would exceed the maximum amount the mortgage secures). With a term plan they are larger but stop after the number of years you pick. Monthly payments are only available on an adjustable-rate HECM.
Uses HUD’s principal limit table at a 7.68% expected rate, payments figured at that rate plus 0.5% mortgage insurance, tenure figured to age 100, and upfront costs (2% FHA insurance, the capped origination fee, about $3,000 other) paid from the loan. An estimate, not a quote.
For a $400,000 paid-off home, with upfront costs paid from the loan:
| Youngest borrower’s age | Principal limit ($400,000 home) | Tenure payment (for life in the home) |
|---|---|---|
| 62 | $114,800 | $693 |
| 65 | $123,200 | $763 |
| 70 | $138,000 | $897 |
| 75 | $150,000 | $1,035 |
| 80 | $168,800 | $1,278 |
| 85 | $195,600 | $1,714 |
Assumptions: principal limit from HUD’s official table at a 7.68% expected rate; balance and unused credit line grow 7.5% a year (7.0% interest + 0.5% annual mortgage insurance); upfront costs = 2% FHA mortgage insurance + the HUD-capped origination fee + about $3,000 of other closing costs. Illustrations, not quotes. Your lender’s rate and a HUD counselor give exact figures.
Monthly payments are figured at HUD’s expected rate plus the annual mortgage insurance: 7.68% + 0.5% = 8.18%.
Tenure payments are modest because HUD figures them as if the payments could run until the youngest borrower is 100 (or for at least five years, for anyone over 95). Payments arrive on the first business day of each month. The upside is that they keep coming as long as you live there, however long that is.
It depends on the youngest borrower’s age, the home’s value and the interest rate. For a paid-off $400,000 home at age 70, a tenure (lifetime) payment is about $897 a month at today’s expected rate in our estimate.
With a tenure plan, for as long as at least one borrower lives in the home as their principal residence. With a term plan, for the number of years you choose.
Tenure pays a smaller amount for as long as you live in the home. Term pays a larger amount for a fixed number of years, then stops.
No. A fixed-rate HECM pays out as a single lump sum at closing. Monthly payments and lines of credit need an adjustable-rate HECM.
Educational, not individual financial advice. The Equity Ledger doesn’t originate loans. Reverse mortgages are complex and the right answer depends on your specific situation — confirm the details with a HUD-approved counselor before you decide.
Rules and figures are from U.S. government program materials current at publication; HECM limits and rates change — verify with HUD/FHA or a HUD-approved counselor.