Reverse mortgage calculator: estimate your 2026 HECM principal limit and net cash
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Use this free reverse mortgage calculator for homeowners 62 and older to estimate your HECM principal limit and net available cash. It uses HUD's 2026 HECM lending limit and a transparent Principal Limit Factor (PLF) model — real figures depend on HUD's published PLF tables and your locked Expected Interest Rate.
Your numbers
The expected interest rate above is an assumption you choose so the tool can model a principal limit. It is not a rate quote and it is not an APR. Your Annual Percentage Rate (APR) — which includes interest plus FHA mortgage insurance and closing costs — is disclosed only on a lender’s official Loan Estimate. This tool is an educational estimator only. It is not a loan offer, commitment to lend, or approval. All figures are preliminary and subject to final lender approval, underwriting, appraisal, title review, and HUD requirements. Your actual principal limit and proceeds are determined by a HUD-approved HECM lender at FHA case-number assignment.
Based on a Principal Limit Factor of 35.0% × $500,000 (capped at the 2026 HUD lending limit of $1,249,125).
HECM proceeds are used to retire any existing mortgage at closing.
Initial MIP + origination + third-party fees. Educational estimate.
Principal limit, minus mortgage payoff, minus estimated closing costs. Excludes any optional set-asides.
What next with these numbers?
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Illustrative HECM loan-to-value by age
This quick-reference table shows roughly what share of a home's value a HECM principal limit represents at each age, using an expected rate of 6.625% with a 2% margin as of May 28, 2026. Find the age of the youngest borrower to see the corresponding loan-to-value.
| Age | LTV | Age | LTV | Age | LTV | Age | LTV |
|---|---|---|---|---|---|---|---|
| 62 | 32.8% | 72 | 38.8% | 82 | 48.6% | 92 | 63.1% |
| 63 | 33.5% | 73 | 39.7% | 83 | 49.8% | 93 | 64.9% |
| 64 | 34.2% | 74 | 40.5% | 84 | 51.2% | 94 | 66.7% |
| 65 | 34.9% | 75 | 41.5% | 85 | 52.5% | 95 | 68.5% |
| 66 | 35.7% | 76 | 42.2% | 86 | 53.9% | 96 | 69.5% |
| 67 | 36.5% | 77 | 43.3% | 87 | 55.4% | 97 | 70.1% |
| 68 | 37.3% | 78 | 44.3% | 88 | 56.6% | 98 | 70.1% |
| 69 | 38.1% | 79 | 45.0% | 89 | 58.2% | 99 | 70.1% |
| 70 | 38.6% | 80 | 46.1% | 90 | 59.8% | ||
| 71 | 38.6% | 81 | 47.3% | 91 | 61.4% |
Sources: HUD Mortgagee Letters; HUD — HECM Program
- The expected rate changes weekly (typically each Tuesday); any change in the expected rate or the margin selected changes the resulting LTV.
- These are gross figures — closing costs, the initial mortgage insurance premium, and any payoff of an existing mortgage have not been deducted.
- The chart uses the age of the youngest borrower. It does not show figures for a non-borrowing spouse under age 62.
- Illustrative only. Not an offer, commitment to lend, or estimate of your proceeds.
Three reverse mortgage estimates side by side
Each scenario below is run through the same estimator at an assumed expected rate of 7.500% — the value currently set on the slider above. Move the slider and these examples update with it, which shows how sensitive a principal limit is to rates.
| Scenario | Youngest age | Home value | Mortgage payoff | Principal limit | Est. net cash |
|---|---|---|---|---|---|
| Pay off the mortgage | 68 | $450,000 | $140,000 | $151,200 | $0 |
| Free-and-clear home, standby credit line | 73 | $650,000 | $0 | $234,650 | $210,475 |
| Higher-value home above the HUD cap | 78 | $1,500,000 | $250,000 | $509,643 | $222,160 |
Illustrative educational estimates only — not a loan offer, commitment to lend, approval, or rate quote, and no figure shown is an APR. Values above the 2026 HUD HECM lending limit of $1,249,125 are capped at that limit. You must continue to pay property taxes, homeowners insurance, HOA dues if applicable, and maintain the home as your principal residence.
How this reverse mortgage calculator works
Every HECM estimate starts with the Maximum Claim Amount (MCA) — the lesser of the appraised value and HUD’s 2026 HECM lending limit of $1,249,125. The MCA is then multiplied by a Principal Limit Factor (PLF), a percentage HUD publishes for each combination of the youngest borrower’s age and the Expected Interest Rate.
- MCA = min(appraised value, $1,249,125)
- Principal limit = MCA × PLF (PLF rises with age, falls as the expected rate rises)
- Mandatory obligations — existing mortgage payoff, liens, and closing costs — come out first
- What remains is available as a lump sum, term or tenure payments, a line of credit, or a blend
This tool reads the factor directly from HUD’s published PLF table (no interpolation), but the expected rate is your assumption, so treat the output as a planning range. A HUD-approved HECM lender determines the binding number at FHA case-number assignment, using the expected rate in effect at that moment.
Sources: HUD — HECM Program; HUD — FHA Mortgage Limits; CFPB — Reverse Mortgages
Which payout option fits your goal?
| Feature | How it pays | Best for | Trade-off |
|---|---|---|---|
| Lump sum (fixed rate) | One draw at closing | Paying off a large existing mortgage | Interest accrues on the whole balance from day one; no future growth feature |
| Line of credit (adjustable) | Draw only what you need | Standby liquidity and longevity planning | Unused balance grows at the note rate plus the 0.5% annual MIP rate |
| Tenure payments | Equal monthly advances for as long as you occupy the home | Supplementing fixed retirement cash flow | Smaller monthly amount than a term plan |
| Term payments | Equal monthly advances for a set number of years | Bridging to Social Security or a pension start date | Advances stop at the end of the term |
| Modified / blended | Part credit line, part monthly advance | Households wanting both income and a reserve | Requires more planning up front |
Terms used in this calculator
- Maximum Claim Amount (MCA)
- The lesser of the appraised value and HUD's 2026 HECM lending limit.
- Principal Limit Factor (PLF)
- HUD-published percentage of the MCA available, driven by the youngest borrower's age and the Expected Interest Rate.
- Expected Interest Rate
- The rate used only to look up the PLF. It is not the note rate and it is not an APR.
- Mandatory obligations
- Items that must be paid from proceeds at closing — existing mortgage, liens, and closing costs.
- Set-aside
- Funds reserved from the principal limit, most often a Life Expectancy Set-Aside for taxes and insurance after Financial Assessment.
- Initial MIP
- FHA's upfront mortgage insurance premium, 2% of the MCA, financed into the loan in most cases.
Keep going with the other HECM tools
- Closing costs calculator
Itemize MIP, origination, and third-party fees.
- Credit line growth calculator
Project how an unused line grows over time.
- HECM for Purchase calculator
Estimate the required down payment.
- Loan balance projection
See balance and remaining equity by year.
- 2026 HECM lending limit
How the $1,249,125 cap is applied.
- Costs and fees explained
What each closing cost line item covers.
Want a more precise estimate?
Simply Approved Mortgages will run your numbers against HUD's published PLF table for your exact age and the current Expected Interest Rate — and walk you through a full cost-and-benefit comparison.
Understand the numbers behind your estimate
- Credit line growth calculator
Project how an unused HECM line of credit grows over time.
- Get my estimate
Talk with a licensed loan officer — no obligation.
- Reverse mortgage rates
How HECM interest rates and margins are set.
- Fixed vs. adjustable HECM
Trade-offs between the two HECM rate structures.
- 2026 HECM lending limits
This year's Maximum Claim Amount (MCA) and how it applies.
- Closing costs calculator
Itemize estimated MIP, origination, and third-party HECM costs.
Reverse mortgage calculator FAQ
- How accurate is this reverse mortgage calculator?
- It's a solid starting estimate based on HUD's 2026 lending limit and a factor read from HUD's published Principal Limit Factor table for the age and expected rate you enter. Your exact figure depends on HUD's published PLF tables, the lender's locked Expected Interest Rate, and your final appraised value.
- What is the 2026 HECM lending limit?
- HUD's 2026 HECM lending limit is $1,249,125. Home values above this cap are calculated using the limit, not the full appraised value, unless you pursue a jumbo (proprietary) reverse mortgage.
- Does my age affect how much I can borrow?
- Yes. The older the youngest borrower on title, the higher the Principal Limit Factor, which generally means access to a larger share of your home's value.
- Do I have to pay off my existing mortgage with a reverse mortgage?
- Yes. Any existing mortgage balance must be paid off at closing, typically using your HECM loan proceeds, before you receive any remaining funds.
- Will I still have to pay anything monthly?
- There's no required monthly principal and interest payment, but you must keep paying property taxes, homeowners insurance, HOA dues if applicable, and maintain the home.
- Is this calculator a loan approval?
- No. This tool provides an educational, preliminary estimate only. It is not a loan offer, commitment to lend, or approval. Final numbers require lender underwriting, an FHA appraisal, and HUD's financial assessment.
- Why does the expected interest rate affect my estimate but not my actual payment?
- The expected interest rate is used only to look up your Principal Limit Factor on HUD's published table — it does not determine your monthly note rate or your APR. A lower expected rate produces a larger principal limit; your actual rate is disclosed separately on the lender's Loan Estimate.
- Why is my estimate capped even though my home is worth more?
- HUD's 2026 HECM lending limit of $1,249,125 applies to every borrower nationwide, regardless of location. If your appraised value exceeds that limit, the calculator (and your actual loan) uses the capped amount unless you pursue a proprietary jumbo reverse mortgage.
- Can I change my mind about the payout option after I see my estimate?
- Yes, generally. Adjustable-rate HECMs let you choose or later modify among lump sum, line of credit, tenure, and term payments, subject to HUD's first-year disbursement limits. Fixed-rate HECMs pay out only as a single lump sum at closing and cannot be changed afterward.
- Does adding a younger spouse to the loan change my estimate?
- Yes. HUD's Principal Limit Factor is based on the age of the youngest borrower (or Eligible Non-Borrowing Spouse) on title. Adding a younger co-borrower generally lowers the principal limit compared to using only the older spouse's age.
- Why did my estimate change when I adjusted the existing mortgage balance?
- Any existing mortgage balance is paid off first from your HECM proceeds at closing. A higher existing balance leaves less net cash available to you, even though the gross principal limit stays the same for a given age, value, and rate.
Keep reading: the next steps most people take
Related reverse mortgage articles, rate updates & HECM guides
New reverse mortgage articles are publishing soon. In the meantime, browse upcoming categories:
Documents required for a reverse mortgage
When you apply for a HECM reverse mortgage, your lender will request documents that verify your identity, property ownership, income, and assets. Gathering these in advance can speed up your estimate and application.
- Government-issued photo ID
Current driver’s license, passport, or state-issued ID.
- Social Security number verification
Social Security card or award letter showing your SSN.
- Current mortgage statement
Most recent statement if refinancing; purchase agreement if buying.
- Homeowner’s insurance declarations page
Shows current coverage, premium, and mortgagee clause.
- Property tax statement or receipt
Latest county tax bill showing taxes are current or payment history.
- Bank statements
Last 1-2 months to verify closing funds and residual reserves.
- Investment or retirement accounts
Recent statements for IRA, 401(k), brokerage, or other liquid assets.
- HOA or condo information
Homeowners association statement or condo questionnaire if applicable.
- Trust or title vesting documents
Required when the home is held in a living trust or entity.
- Flood insurance declaration
Current policy if the property is in a flood zone.
- HUD-approved counseling certificate
Required before loan application. Obtained from a HUD-approved reverse mortgage counselor.
Why we pull credit for your reverse mortgage pre-approval
HUD requires a Financial Assessment for every HECM reverse mortgage, including a review of your credit history and record of paying property taxes and homeowners insurance. As part of our standard broker/lender pre-approval process, we typically order a tri-merge credit report through a HUD-approved credit vendor to verify identity, review obligations, and confirm that you can continue paying property taxes, homeowners insurance, and maintenance after closing. Whether a tri-merge is required, and any fees, are set by the wholesale lender and credit vendor — not by HUD as a stand-alone rule.
Pay for your credit report — SmartPay
Simply Approved Mortgages uses SmartPay to securely collect the credit report fee for your reverse mortgage pre-approval. Payment goes directly to the credit vendor — not to us — and unlocks a tri-merge credit report (Equifax, Experian, TransUnion) that your loan officer uses to complete the broker/lender pre-approval file for HUD's Financial Assessment.
- Secure, PCI-compliant checkout hosted by SmartPay
- Standard step in our broker/lender pre-approval process (not a HUD stand-alone requirement)
- Optional — you can decline; your loan officer will explain any impact on your options
You'll be redirected to cic.cra.xedalink.net (SmartPay).
Check your credit first — $1 trial at MyITINCredit
Before you apply, it's smart to know exactly where your credit stands. MyITINCredit offers a $1 trial for 15 days that includes all three credit reports and scores (Equifax, Experian, TransUnion), plus ongoing credit monitoring so you can catch errors, dispute inaccuracies, and watch for identity theft.
- See all 3 bureau reports & scores before your lender does
- Ongoing monitoring alerts you to new accounts or score changes
- Fix errors early — cleaner credit can widen your reverse mortgage options
You'll be redirected to myitincredit.com. Third-party service — terms apply.
Credit report fees are paid directly to the credit vendor. Simply Approved Mortgages (NMLS #2620881) does not receive compensation from these credit services. MyITINCredit is an independent third-party service; pricing, terms, and features are set by that provider.
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