Wealthy PotReverse Mortgage Calculator: How Much Can You Get From a HECM?
A reverse mortgage lets homeowners 62 and older turn home equity into cash, a monthly payment or a credit line, with no monthly mortgage payment. The amount you can get is set by HUD's principal limit factors, which depend on the youngest borrower's age and the interest rate, applied to your home's value up to the 2026 limit of $1,249,125. The calculator below uses HUD's actual table, then subtracts your existing mortgage, the 2% upfront mortgage insurance and closing costs.
Table of Contents
Reverse Mortgage Calculator
This estimates a Home Equity Conversion Mortgage (HECM), the FHA-insured reverse mortgage most borrowers use. Enter the youngest borrower's age, your home's value and what you still owe. The expected rate is the 10-year Treasury rate plus the lender's margin; ask lenders for their margin.
The Short Answer
- Who qualifies: the youngest borrower must be 62 or older (24 CFR 206.33), the home must be your main residence, and you must complete counseling with a HUD-approved HECM counselor.
- How much: HUD's factors run from about 27% to 65% of the home's value for ages 62 to 90 at expected rates of 5% to 8%. A 70-year-old at a 6% expected rate gets 41.5%.
- Cap: home values above $1,249,125 (the 2026 limit) don't add more.
- Costs: 2% upfront mortgage insurance on the home value used, an origination fee of up to $6,000, other closing costs, interest, and 0.5% a year of mortgage insurance.
- No monthly payment, but you must keep paying property taxes, insurance and upkeep, and the loan comes due when the last borrower dies or moves out.
How the Amount Is Set
- Maximum claim amount: the lesser of your home's appraised value and the HECM limit, $1,249,125 for FHA case numbers assigned in 2026 (up from $1,209,750 in 2025). The limit is the same nationwide.
- Principal limit factor: HUD's table gives a percentage based on the youngest borrower's age (older means more) and the expected interest rate (higher means less). For an adjustable-rate HECM the expected rate is the lender's margin plus the 10-year Treasury rate (24 CFR 206.3). The table starts at 3%, so rates below that use the 3% factors.
- Principal limit = maximum claim amount x factor.
- Mandatory costs come out first: paying off your existing mortgage, the upfront mortgage insurance, and closing costs.
- First-year limit: in the first 12 months you can use up to 60% of the principal limit, or your mandatory costs plus 10% if that is more (HUD Handbook 4000.1). The rest is available after the first year.
Example (the calculator's defaults): age 70, a $400,000 home, a $50,000 mortgage and a 6.75% expected rate. The factor is 38.1%, so the principal limit is $152,400. Subtract the $50,000 payoff, $8,000 of upfront insurance, the $6,000 maximum origination fee and $3,000 of other costs, and $85,400 is left, of which $24,440 can be used in the first year.
Principal Limit Factors by Age
Selected factors from HUD's table for FHA case numbers assigned on or after October 2, 2017 (the current table):
| Youngest borrower | 5.0% expected rate | 6.0% | 7.0% | 8.0% |
|---|---|---|---|---|
| 62 | 41.0% | 35.7% | 31.2% | 27.2% |
| 65 | 43.0% | 37.8% | 33.3% | 29.4% |
| 70 | 46.5% | 41.5% | 37.0% | 33.0% |
| 75 | 49.2% | 44.3% | 40.0% | 36.0% |
| 80 | 53.4% | 48.8% | 44.6% | 40.8% |
| 85 | 59.1% | 54.9% | 51.1% | 47.6% |
| 90 | 65.3% | 61.8% | 58.6% | 55.5% |
At age 70 and a 7% expected rate, for example, a $400,000 home supports a principal limit of $148,000 (37.0%).
What a HECM Costs
- Upfront mortgage insurance: 2% of the maximum claim amount, $8,000 on a $400,000 home (Mortgagee Letter 2017-12).
- Annual mortgage insurance: 0.5% a year of the loan balance, added to what you owe.
- Origination fee: up to the greater of $2,500 or 2% of the first $200,000 of home value plus 1% above that, never more than $6,000 (24 CFR 206.31). Lenders may charge less.
- Third-party closing costs: appraisal, title, recording and counseling.
- Interest, which compounds on the growing balance because you make no payments.
All of these can be paid from the loan, which is why the balance grows over time and less equity is left for you or your heirs.
How You Can Take the Money
- Fixed rate: one lump sum at closing only.
- Adjustable rate: a line of credit, monthly payments for a set term, monthly payments for as long as you live in the home (tenure), or a combination (24 CFR 206.19).
A line of credit is the most flexible: you pay interest only on what you draw.
When the Loan Comes Due
The loan becomes due when the last borrower dies and the home isn't the main residence of another borrower, when you sell or give away the home, when no borrower has lived there for more than 12 months in a row because of illness, or if you don't pay property taxes, insurance and other property charges (24 CFR 206.27). An eligible non-borrowing spouse can stay in the home after the borrower dies if the conditions in the loan are met.
You or your heirs never owe more than the home is worth. The borrower has "no personal liability" and the lender cannot get a deficiency judgment (24 CFR 206.27(b)(8)). Heirs who want to keep the home can pay off the balance, or the loan can be settled by selling the home for at least the amount HUD sets, which can't be more than 95% of the appraised value.
Is a Reverse Mortgage Right for You?
It can make sense if you plan to stay in your home for many years, have substantial equity, and need income or a cash cushion without a monthly payment. It is usually a poor fit if you may move soon (the upfront costs are high), if you can't keep up with taxes and insurance, or if leaving the home to heirs matters most. Alternatives include downsizing, a HELOC or home equity loan (which require monthly payments), or local property tax relief programs. See our full reverse mortgage pros and cons.
Sources & Methodology
- HUD HECM for lenders: principal limit factor tables (on or after October 2, 2017) and maximum claim amounts by year.
- HUD No. 25-145: 2026 HECM limit of $1,249,125.
- Mortgagee Letter 2017-12: 2% initial and 0.5% annual mortgage insurance.
- 24 CFR part 206: eligibility, expected rate, payment options, fees, due and payable rules, non-recourse.
- HUD Handbook 4000.1: first-year Initial Disbursement Limit.
- Federal Reserve H.15: 10-year Treasury yield.
Method notes. The calculator looks up HUD's principal limit factor for the age you enter (62 to 99) and the expected rate (in 1/8 steps from 3%), multiplies it by the lesser of home value and the 2026 limit, and subtracts your payoff, the 2% upfront mortgage insurance, the maximum allowed origination fee and other costs you enter. It does not model set-asides for taxes and insurance that a lender may require after its financial assessment, a non-borrowing spouse under 62, fixed-rate lump-sum limits, or line-of-credit growth. Your lender's official figures will differ.
This article is educational and is not financial advice. Wealthy Pot is not affiliated with HUD or FHA. Reverse mortgage counseling with a HUD-approved counselor is required before you can get a HECM. Figures were checked on 2026-10-13.
FAQ
How much money can I get from a reverse mortgage?
Your principal limit is HUD's factor for your age and the expected rate times your home value (up to $1,249,125 in 2026), minus your existing mortgage, the 2% upfront insurance and closing costs. Use the calculator above.
What is the reverse mortgage limit for 2026?
$1,249,125 for FHA case numbers assigned January 1 to December 31, 2026, the same in every area.
Can I owe more than my house is worth?
The loan balance can grow above the home's value, but you and your heirs can't be made to pay the difference: HECMs have no personal liability, and the debt is enforced only through the home.
Do I still pay property taxes with a reverse mortgage?
Yes. Failing to pay property taxes, homeowners insurance or other property charges can make the loan due.
Why can I only use part of the money in the first year?
HUD limits first-year draws to 60% of the principal limit (or your mandatory costs plus 10%, if higher) to protect borrowers and the insurance fund. The rest is available after 12 months.
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"Reverse Mortgage Calculator: How Much Can You Get From a HECM?" Wealthy Pot, 2026. https://wealthypot.com/reverse-mortgage-calculator/
