How Much Can I Get From a Reverse Mortgage? 2026 Calculator Guide

"How much can I get?" is the first question most seniors ask about reverse mortgages. While only a formal application and appraisal provide exact figures, understanding the calculation helps you estimate proceeds and make informed decisions.

This comprehensive guide walks through every factor affecting your reverse mortgage amount, provides real calculation examples, and helps you understand what to expect from a HECM loan in 2026.

The Four Factors Determining Your Reverse Mortgage Amount

Your reverse mortgage proceeds depend on these interconnected factors:

1. Your Age (Minimum 62 Required)

You must be at least 62 years old to qualify for a HECM reverse mortgage. Beyond meeting this minimum requirement, your age directly affects your borrowing power:

• Older borrowers qualify for higher percentages of their home value
• The calculation uses the youngest borrower's age
• Non-borrowing spouses under 62 reduce available proceeds

2. Your Home's Appraised Value

A HUD-approved appraiser determines your home's current market value:

• Higher home values mean higher potential proceeds
• The 2026 HECM limit caps calculations at $1,209,750
• Homes worth more may benefit from jumbo reverse mortgages

3. Current Interest Rates

The "expected interest rate" used for calculations affects your Principal Limit Factor:

• Lower rates = higher proceeds
• Higher rates = lower proceeds
• Rates change regularly, affecting available amounts

4. Existing Mortgage Balance

Any current mortgage must be paid off from reverse mortgage proceeds:

• Higher existing debt = lower net proceeds
• Homes owned free-and-clear maximize available funds
• The existing mortgage payoff happens at closing

Understanding the Principal Limit Factor (PLF)

The Principal Limit Factor (PLF) is the percentage of your home's value (or HECM limit, whichever is less) that you can borrow. HUD publishes PLF tables based on age and interest rates.

Sample PLF Table (2026 Estimates)

Note: These are estimates based on typical 2026 interest rate scenarios. Actual PLFs vary with current rates. Contact a reverse mortgage specialist for current figures.

Step-by-Step Calculation Example

Here's how reverse mortgage proceeds are calculated:

What Reduces Your Available Proceeds

Several mandatory deductions affect your net proceeds:

Upfront Mortgage Insurance Premium (UFMIP)

All HECM loans require an upfront mortgage insurance premium of 2% of the home value (or HECM limit). This can be financed from proceeds.

Origination Fees

Lenders can charge up to:

• $2,500 for homes valued at $125,000 or less
• 2% of the first $200,000 + 1% of amount over $200,000
• Maximum of $6,000 regardless of home value

Third-Party Closing Costs

• Appraisal: $400-700
• Title insurance: $1,000-2,500
• Recording fees: $100-300
• Credit report, flood certification, surveys

Set-Asides

Funds may be held for:

• Property charge set-aside: For taxes and insurance if required by financial assessment
• Repair set-aside: If home needs FHA-required repairs
• Servicing fee set-aside: For monthly loan servicing

Maximizing Your Reverse Mortgage Proceeds

Consider these strategies to potentially increase your available funds:

Wait Until You're Older

Each year you wait increases your PLF. However, weigh this against:

• Interest rate changes (could increase or decrease proceeds)
• Your current financial needs
• The line of credit growth benefit of earlier access

Pay Down Existing Mortgage

Reducing your current mortgage before applying means more net proceeds. Even making extra payments in the months before applying helps.

Choose Line of Credit

The HECM line of credit has a unique feature: unused funds grow over time at the same rate as loan interest. This can significantly increase your available credit over the years.

Compare Lenders

While HECM terms are regulated, costs vary between lenders. Origination fees and margins differ, affecting your net proceeds. Working with a broker who compares multiple lenders can maximize your benefit.

High-Value Homes: Jumbo Reverse Mortgages

If your home exceeds the $1,209,750 HECM limit, consider a proprietary (jumbo) reverse mortgage:

• No government-imposed lending limit
• Available for homes valued $1 million to $10+ million
• Not FHA-insured (different terms and protections)
• May access more equity from high-value California properties

How Payment Options Affect Access to Funds

The payment option you choose determines how you access your proceeds:

Lump Sum (Fixed Rate)

Receive all funds upfront at a fixed interest rate. Maximum initial disbursement limited to 60% of principal limit in first year (with some exceptions).

Line of Credit (Adjustable Rate)

Draw funds as needed over time. Unused credit line grows approximately 5-6% annually, potentially exceeding your original amount.

Tenure Payments

Equal monthly payments for as long as you live in the home. Amount calculated based on life expectancy and principal limit.

Term Payments

Equal monthly payments for a set period you choose. Higher monthly amounts than tenure but for limited duration.

Combination

Mix monthly payments with line of credit access for maximum flexibility.

Frequently Asked Questions

How much money can I get from a reverse mortgage?

The amount depends on your age, home value, interest rates, and existing mortgage balance. Generally, seniors 62+ can access 40-75% of their home's appraised value (up to $1,209,750 in 2026). Older borrowers with more valuable homes and no existing mortgage receive the highest proceeds.

What is the Principal Limit Factor (PLF) for reverse mortgages?

The Principal Limit Factor (PLF) is a percentage that determines your maximum borrowing amount. It's based on your age and current interest rates. For example, a 70-year-old might have a 52% PLF, meaning they could access up to 52% of their home's value (subject to the HECM limit).

Does my existing mortgage affect reverse mortgage proceeds?

Yes, any existing mortgage must be paid off from your reverse mortgage proceeds first. For example, if you qualify for $300,000 but owe $100,000 on your current mortgage, you'd receive $200,000 in net proceeds (minus closing costs).

What is the maximum home value for HECM calculations?

The 2026 HECM lending limit is $1,209,750. Homes valued above this amount use $1,209,750 for calculations. If your home is worth more, consider a proprietary (jumbo) reverse mortgage that can accommodate higher values.

How do interest rates affect reverse mortgage amounts?

Lower interest rates mean higher proceeds because the expected interest accrual over time is less. When rates are low, your Principal Limit Factor increases, allowing you to borrow more. This is why timing can matter for reverse mortgage applications.

Can I get more money by waiting to apply?

Generally yes, because older borrowers qualify for higher percentages. However, this must be weighed against potential interest rate changes and your current financial needs. The line of credit growth feature also means earlier access can grow over time.

What closing costs reduce my reverse mortgage proceeds?

Typical closing costs include: 2% upfront mortgage insurance premium (MIP), origination fees up to $6,000, appraisal ($400-700), title insurance, recording fees, and third-party fees. These typically total $8,000-15,000 and are usually financed from proceeds.

Related Reverse Mortgage Resources

• Reverse Mortgages Pillar Page
• What Is a Reverse Mortgage?
• HECM Eligibility Requirements
• Pros and Cons of Reverse Mortgages
• Jumbo Reverse Mortgages for High-Value Homes