How it works
What the reverse mortgage calculator is telling you
The number the calculator produces — called the principal limit — is the maximum amount you can access through a HECM reverse mortgage. It is not the same as your home's equity. It is a fraction of your home's value, determined by three inputs that HUD has formalized into a published table updated annually.
1
Age determines your factor
HUD publishes a Principal Limit Factor (PLF) for every age from 62–90. Older borrowers receive a higher factor — because the loan is expected to run for fewer years.
2
Home value sets the base
The calculation uses the lesser of your home's appraised value or the FHA lending limit ($1,249,125 in 2026). Homes above this limit may qualify for a jumbo reverse mortgage.
3
Rate adjusts the factor
Higher expected interest rates reduce the PLF. The rate used is the "expected rate" — a 10-year CMT rate plus a lender margin — not your actual accrual rate.
4
Mortgage balance is deducted
Any existing mortgage must be paid off at closing. The calculator subtracts this from your principal limit to show your true net available funds.
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Payout options
Three ways to take your HECM funds
Once you know your principal limit, you choose how to receive it. Most borrowers don't realize there are three structurally different options — and one of them grows over time.
| Option | How it works | Best for |
|---|---|---|
| Line of credit | Unused balance grows monthly at your interest rate + 0.5% MIP. Draw when you choose. | Buffer asset strategy, flexibility, preserving options |
| Tenure payments | Fixed monthly payments for as long as you live in the home — even past the loan balance. | Supplementing retirement income, predictable cash flow |
| Lump sum | Available at fixed rate only. 60% of principal limit in year one; remainder in year two. | Paying off existing mortgage, large one-time need |
You can also combine options — for example, a partial lump sum to pay off your existing mortgage and a line of credit for the remainder. This is one of the decisions where working with a CRMP makes a real difference in the outcome.
→ See how a HECM line of credit grows over timeKey factors
What affects your principal limit
Understanding what drives the number helps you plan — and in some cases, time your application strategically.
- Age — Every year you wait, the PLF increases. A borrower at 70 accesses meaningfully more than the same borrower at 62, all else equal. There is no benefit to applying before you're ready.
- Home value — Increases in your home's appraised value increase your principal limit, up to the FHA cap of $1,249,125. Homes valued above this limit may qualify for a jumbo reverse mortgage.
- Interest rates — This is the factor most people overlook. When rates rise, the PLF falls. A 1% increase in the expected rate can reduce your principal limit by 8–12% depending on your age. When rates are elevated, waiting for them to fall can materially increase your available funds.
- Existing liens — Any existing mortgage, HELOC, or lien must be satisfied at closing. The larger your existing balance, the smaller your net available funds — but many borrowers use the HECM proceeds themselves to eliminate a monthly mortgage payment entirely.
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Common questions
Frequently asked questions
How accurate is this reverse mortgage calculator?
This calculator uses the current 2026 HUD Principal Limit Factor (PLF) tables and the FHA lending limit of $1,249,125. Results are estimates based on your age, home value, and expected interest rate. Your actual principal limit will be determined at application using a full appraisal and the interest rate in effect on your closing date. Use this tool to explore scenarios — then speak with a licensed HECM specialist to confirm your numbers.
What is the minimum age for a reverse mortgage?
The minimum age for a federally-insured HECM is 62. If you have a spouse or co-borrower under 62, they can be listed as an eligible non-borrowing spouse, which affects the principal limit calculation — the PLF is based on the younger spouse's age. Both borrowers must be at least 62 to be listed as co-borrowers.
How much can I get from a reverse mortgage?
The amount you can access depends on your age, your home's appraised value (up to the $1,249,125 FHA limit), and the current expected interest rate. A 68-year-old with a $650,000 home and no existing mortgage at a 5.5% expected rate will have a principal limit of roughly $340,000–$360,000. Use the calculator above to estimate your specific number.
Does a reverse mortgage affect Social Security or Medicare?
HECM loan proceeds are not considered income, so they do not affect Social Security retirement benefits or Medicare eligibility. However, if you receive Medicaid or Supplemental Security Income (SSI), reverse mortgage proceeds held in a bank account for more than one month may be counted as an asset and could affect eligibility. Consult with a benefits advisor if you receive means-tested benefits.
What is the FHA lending limit for reverse mortgages in 2026?
The FHA maximum claim amount for HECM loans in 2026 is $1,249,125. This is the ceiling on the home value used in your principal limit calculation. If your home is worth $800,000, that full value is used. If your home is worth $1,500,000, only $1,249,125 is used for the HECM calculation — though you may qualify for a jumbo reverse mortgage on the full value.
Can I get a reverse mortgage if I still have a mortgage?
Yes. If you have an existing mortgage or HELOC, it must be paid off at or before closing on your HECM. In many cases, the reverse mortgage proceeds are used to pay off the existing balance — eliminating the required monthly mortgage payment. The calculator above deducts your existing mortgage balance to show your true net available funds after payoff.
Free guide
The HECM Strategy Guide — 5 emails, no fluff
Written by Renee Konstantine, CRMP. Covers principal limit strategy, line of credit growth, H4P basics, and when to involve your CFP.
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