HECM refinance calculator: does a new reverse mortgage pay?
If your home has gained value or you are older than when you took your HECM, a refinance may give you more. Lenders only do it when three tests pass. Enter a few figures from your monthly statement and see where you stand.
An estimate only, not a quote, an offer of credit or a commitment to lend, and not a substitute for a full and proper quote. Contact Ken for an accurate, complete quote on your home. Uses HUD’s principal limit factor tables, the 2026 FHA limit of $1,249,125, the HUD maximum origination fee and an estimate of third-party costs. Adjustable-rate HECM figures; the growth rate changes when the rate changes. Borrowers must keep paying property taxes, homeowner’s insurance and upkeep and live in the home. This material is not from HUD or FHA and was not approved by HUD, FHA or any government agency. Refinance tests as generally applied by lenders; your lender’s written disclosure controls.
What the numbers mean
The five-times test
The increase in your principal limit has to be at least five times what the refinance costs. It keeps borrowers from paying for a new loan that barely helps them, and it matches the anti-churning disclosure (HUD-92901) every lender must give you.
The money-left-over test
After the old loan is paid off and the costs are covered, at least 5% of the new principal limit has to be available to you.
The 18-month wait
The current loan must be at least 18 months old. A refinance also brings a credit for the upfront FHA insurance you paid the first time, which lowers the cost.
Not sure what your statement numbers mean? Send them to me and I’ll read them with you. New to reverse mortgages? Start with the main calculator.
Written by Kenneth M. Adler
Every page on this site is written and maintained by me: the same person who answers the phone, runs your numbers, and handles your file start to finish. No call center, no hand-offs, no lead-selling. More about how I work →
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