How much a HECM reverse mortgage could pay you, with HUD's 2026 limits
Updated 2026-10-02
A HECM reverse mortgage lends a share of your home's value set by HUD's principal limit factor table: the older you are and the lower the expected rate, the larger the share. The calculator looks up your factor in HUD's table, applies the 2026 limit of $1,249,125, takes off the 2% upfront mortgage insurance, closing costs and any mortgage you must pay off, and shows what is left and how the balance grows. No personal details are asked for or stored. Compare a HELOC · compare a cash-out refinance.
You and your home
Your reverse mortgage estimate
Cash available after costs and payoff
$88,800
principal limit $156,800
HUD principal limit factor
0.392
age 70, expected rate 6.5%
Upfront MIP (2%) + costs
$18,000
MIP $8,000 on $400,000
Balance after 10 years
$130,028
$299,830 if you take all the cash at closing
Estimates for planning, not a loan offer or financial advice. Every rate and cost here is a number you enter or an example you can change; confirm figures with your lender.
MCA = lesser of value and $1,249,125 · Principal limit = MCA × PLF(age, expected rate) · Cash available = principal limit − 2% × MCA − closing costs − mortgage payoff · Balance after t years = drawn × (1 + (note rate + 0.5%) ÷ 12)12t
The calculator uses HUD's general table for ages 62 to 99 with expected rates from 3% to 12% in 1/8-point steps; it rounds your expected rate down to the nearest step and uses 3% for anything lower. The projection assumes the upfront costs and payoff are financed and that you draw nothing more (or, in the second figure, everything at closing). Your lender's quote shows how much you can draw at closing and in the first year, and how a line of credit option works.
Worked example
A 70-year-old with a $400,000 home and a 6.5% expected rate has a factor of 0.392, so the principal limit is $156,800. Upfront MIP is $8,000; with $6,000 origination and $4,000 of other costs and a $50,000 mortgage to pay off, $88,800 is left to take as cash, monthly payments or a line of credit.
How this calculator works, in plain language
A reverse mortgage lets homeowners 62 and older borrow against their home without monthly payments; the loan is repaid when the borrower no longer lives in the home. HUD decides how much you can borrow with a table: find your age and the expected interest rate, and it gives a percentage of your home's value (capped at the national limit). From that amount the calculator takes away the government insurance charge, the lender's fees and any mortgage that must be paid off. What's left is yours to use. Because you make no payments, the debt grows every month with interest and insurance, which is why the balance projection matters.
Reverse mortgage amounts by age
The same $400,000 home at a 6.5% expected rate, no existing mortgage, $6,000 origination and $4,000 of other costs, factors from HUD's table (downloaded October 2, 2026). Examples, not quotes.
HECM principal limit and cash available by age
Scenario
PLF
Max claim amount
Principal limit
Upfront MIP
Cash available
Age 62, $400k home
0.334
$400,000
$133,600
$8,000
$115,600
Age 65, $400k home
0.355
$400,000
$142,000
$8,000
$124,000
Age 70, $400k home
0.392
$400,000
$156,800
$8,000
$138,800
Age 75, $400k home
0.421
$400,000
$168,400
$8,000
$150,400
Age 80, $400k home
0.466
$400,000
$186,400
$8,000
$168,400
Age 70, $1.5M home (capped)
0.392
$1,249,125
$489,657
$24,983
$454,675
From 62 to 80 the principal limit rises from $133,600 to $186,400. The $1,500,000 home is capped at the $1,249,125 limit, so its factor applies to $1,249,125, not the full value, and its upfront MIP is $24,983.
Common reverse mortgage calculator mistakes
Using the home's full value above the limit. HUD caps the value used at $1,249,125 in 2026.
Forgetting the payoff. Any existing mortgage must be paid off from the proceeds first; if it's larger than what's available, the loan doesn't work.
Ignoring balance growth. Interest plus 0.5% MIP compound monthly; over 10 to 20 years the debt can double.
Stopping tax and insurance payments. HUD says borrowers may stay in the home as long as property taxes and homeowner's insurance are kept current; they remain your job.
Not comparing options. Get quotes from several lenders, talk to a HUD-certified housing counselor, and compare a HELOC or downsizing.
This is an estimate for planning, not a loan offer. Your lender's quote is the place to confirm it.
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For a HECM, multiply the lesser of your home's value and HUD's $1,249,125 limit by HUD's principal limit factor for your age and the expected rate. Then subtract the 2% upfront mortgage insurance, other closing costs and any mortgage you must pay off. At 70 with a $400,000 home and a 6.5% expected rate the factor is 0.392, a $156,800 principal limit.
What is the reverse mortgage limit for 2026?
$1,249,125. HUD Mortgagee Letter 2025-22 (December 11, 2025) sets the 2026 HECM maximum claim amount at 150% of Freddie Mac's $832,750 national conforming limit, for all areas, for case numbers assigned January 1 to December 31, 2026.
How old do you have to be for a reverse mortgage?
62. The CFPB describes the HECM, the most common reverse mortgage, as a home loan only for homeowners who are 62 and older. HUD's general factor table starts at age 62.
What does reverse mortgage insurance cost?
Under HUD Mortgagee Letter 2017-12 the initial mortgage insurance premium is 2.00% of the maximum claim amount ($8,000 on a $400,000 home) and the annual premium is 0.50% of the outstanding balance, which is added to the loan each month along with interest.
Why do older borrowers get more from a reverse mortgage?
HUD's principal limit factors rise with age. At a 6.5% expected rate on a $400,000 home, age 62 gives a factor of 0.334 ($133,600) and age 80 gives 0.466 ($186,400).
Why do higher rates lower the reverse mortgage amount?
A higher expected rate makes the balance grow faster, so HUD's table lends a smaller share of the home's value up front. Raise the expected rate above and watch the factor fall.
Do I still have to pay anything with a reverse mortgage?
Yes. There is no monthly mortgage payment, but you must keep paying property taxes, homeowners insurance and upkeep, use the home as your principal residence and keep it in good condition (CFPB). The loan is repaid when the borrower no longer lives in the home.
How fast does a reverse mortgage balance grow?
Every month interest and the 0.5% annual MIP are added to what you owe. In the example, the $68,000 used at closing (costs plus the mortgage payoff) grows to about $130,028 in 10 years at a 6% note rate; taking all $88,800 of available cash as well, it reaches about $299,830.
