Reverse Mortgage Calculator
2026 HECM Limits, Costs and Payouts
Estimate how much you can borrow with an FHA reverse mortgage (HECM) using HUD's own principal limit factors and the $1,249,125 limit for 2026, what the upfront costs take, the first-year cap, and how the balance and credit line grow.
Read the full answer — method, rates and figures
Quick answer: A reverse mortgage (FHA's HECM) lets you borrow a share of your home's value, set by HUD's principal limit factor for the youngest borrower's age and the loan's expected interest rate, times the lesser of the home's value and the 2026 limit of $1,249,125. At 70 on a $450,000 home with a 6.5% expected rate, the factor is 0.392, so the principal limit is $176,400.
From that come the 2% upfront mortgage insurance ($9,000), the origination fee and closing costs, and any existing mortgage; here about $158,400 is left, and HUD caps first-year draws at the greater of 60% of the principal limit or your required costs plus 10%. The factor is 0.334 at 62 and 0.466 at 80 at the same rate, so older borrowers and lower rates unlock more.
The balance grows at the interest rate plus 0.5% annual mortgage insurance, and the loan is non-recourse: it is repaid only from the home. Sources: HUD Mortgagee Letters 2017-12, 2014-21 and 2025-22 and 24 CFR part 206, checked September 26, 2026.
How much can I borrow with a reverse mortgage?
HUD's factor for your age and rate × your home value (up to $1,249,125). At 70 on a $450,000 home at 6.5%: a $176,400 principal limit, about $158,400 after costs.
Principal limit
$176,400
Left after costs & payoff
$158,400
Cash in year 1 (max)
$87,840
Balance after 15 yrs
$193,728
Factor 0.392 (age 70, 6.500% row) × $450,000 = $176,400. Upfront mortgage insurance $9,000, fees and costs $9,000: $18,000 in all.
First-year cap $105,840, so up to $87,840 in cash in year 1; the rest of the $158,400 opens after 12 months.
After 15 years: balance $193,728, unused credit line $308,826, equity $507,357 on a home worth $701,085.
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Principal limit
$176,400
Left after costs & payoff
$158,400
Cash in year 1 (max)
$87,840
Balance after 15 yrs
$193,728
Last reviewed 10 November 2026 by the Richify AI agent team.
Reviewed by Felix, Richify's AI CFO — an AI author, presented as one.
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Principal limit = HUD's principal limit factor for the youngest borrower's age and the expected rate, × the maximum claim amount (the lesser of the home value and $1,249,125 in 2026). Rates fall between the table's 1/8-point rows, so we use the next row up, which gives the lower factor: the estimate never overstates. Rates under 3% use the 3% row.
Mandatory obligations = 2% upfront mortgage insurance on the maximum claim amount + the origination fee (default is the legal maximum for your home value, $6,000) + other closing costs + any mortgage being paid off. The first-year cap is the greater of 60% of the principal limit or those obligations plus 10%, never above the principal limit.
The projection assumes an adjustable HECM with a line of credit: your year-1 draw is added at closing, and the balance and the unused credit line each grow monthly at (rate + 0.5%) ÷ 12. We use the expected rate as the note rate too; on a real loan the note rate moves with the index. Servicing fees, property-charge set-asides and non-borrowing spouses under 62 are not modelled.
Your balance, credit line and equity, year by year
| Year | Age | Balance | Credit line | Equity left |
|---|---|---|---|---|
| 1 | 71 | $72,916 | $116,236 | $390,584 |
| 2 | 72 | $78,187 | $124,639 | $399,218 |
| 3 | 73 | $83,839 | $133,649 | $407,888 |
| 4 | 74 | $89,900 | $143,311 | $416,579 |
| 5 | 75 | $96,399 | $153,671 | $425,275 |
| 6 | 76 | $103,367 | $164,779 | $433,956 |
| 7 | 77 | $110,840 | $176,691 | $442,604 |
| 8 | 78 | $118,852 | $189,464 | $451,194 |
| 9 | 79 | $127,444 | $203,161 | $459,704 |
| 10 | 80 | $136,657 | $217,847 | $468,105 |
| 11 | 81 | $146,536 | $233,595 | $476,369 |
| 12 | 82 | $157,129 | $250,482 | $484,463 |
| 13 | 83 | $168,488 | $268,590 | $492,352 |
| 14 | 84 | $180,668 | $288,006 | $499,997 |
| 15 | 85 | $193,728 | $308,826 | $507,357 |
HUD principal limit factors by age at a 6.5% expected rate
| Age | Factor | On $450,000 |
|---|---|---|
| 62 | 0.334 | $150,300 |
| 65 | 0.355 | $159,750 |
| 68 | 0.379 | $170,550 |
| 70 | 0.392 | $176,400 |
| 72 | 0.393 | $176,850 |
| 75 | 0.421 | $189,450 |
| 78 | 0.449 | $202,050 |
| 80 | 0.466 | $209,700 |
| 85 | 0.530 | $238,500 |
| 90 | 0.602 | $270,900 |
| 95 | 0.688 | $309,600 |
Source: HUD HECM principal limit factor table (case numbers from October 2, 2017, Mortgagee Letter 2017-12), read September 26, 2026.
When a reverse mortgage makes sense, and when it doesn't
It fits homeowners who plan to stay put, have their wealth concentrated in the house, and need income or a reserve without selling investments in a bad year. A line of credit opened early and left alone grows with the loan rate, which makes it a flexible backstop.
It fits badly if you may move within a few years (the upfront insurance and fees are front-loaded), if you want to leave the house itself to heirs, or if you can't keep paying property taxes, insurance and upkeep. Compare it with borrowing through a HELOC while you still qualify, using the home equity calculator, and check what your savings can sustain with the retirement withdrawal calculator. HUD requires counseling with an approved counselor before you apply.
How to use this calculator
- Enter the youngest borrower's age (62 or older) and your home's value.
- Enter the expected interest rate your lender quotes, and any mortgage still owed.
- Adjust the origination fee and other closing costs if you have a quote.
- Read your principal limit, what is left after costs, the first-year cap, and how the balance and credit line grow.
❓ Frequently Asked Questions
How much can I get from a reverse mortgage?
Your principal limit is HUD's principal limit factor times the lesser of your home's appraised value and $1,249,125 (the 2026 national limit). The factor depends on the youngest borrower's age and the expected interest rate: at a 6.5% expected rate it is 0.334 at 62, 0.392 at 70 and 0.466 at 80.
Upfront costs and any existing mortgage are paid out of it first.
What is the reverse mortgage limit for 2026?
$1,249,125 for FHA case numbers assigned from January 1 to December 31, 2026 — 150% of Freddie Mac's $832,750 national conforming limit (HUD Mortgagee Letter 2025-22). It is a cap on the home value counted, not on what you receive: a home worth more than that is treated as worth $1,249,125.
What does a reverse mortgage cost?
FHA mortgage insurance of 2% of the home value counted (up to the limit) at closing and 0.5% a year on the balance; an origination fee capped at the greater of $2,500 or 2% of the first $200,000 of value plus 1% above, never more than $6,000; plus third-party closing costs and interest. All can be financed from the loan, which is why they reduce what you can draw.
How much can I take in the first year?
The greater of 60% of the principal limit, or your mandatory obligations (upfront costs plus paying off any existing mortgage) plus 10% of the principal limit, but never more than the principal limit itself. After 12 months the rest becomes available, and on an adjustable HECM the unused line of credit keeps growing.
Does the unused line of credit really grow?
Yes. On a HECM the principal limit grows each month by one-twelfth of the loan's interest rate plus one-twelfth of the 0.5% annual mortgage insurance rate (24 CFR 206.3), so credit you don't draw grows at the same rate the balance does.
That is why some planners open one early as a standby reserve.
Can my heirs owe more than the house is worth?
No. A HECM is non-recourse: neither you nor your estate has personal liability, and the lender can recover the debt only from selling the home (24 CFR 206.27). You must still live there, pay property taxes and insurance and keep the home in repair, or the loan can become due.
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