Reverse mortgage principal limit estimator
A reverse mortgage lets homeowners age 62 and older turn part of their home equity into cash while staying in their home. The initial principal limit is the amount you could receive at closing, before closing costs, the upfront mortgage insurance premium and paying off any existing mortgage. Use the estimator below to see an approximate figure from the current principal limit factor table — no personal information needed.
Last updated October 22, 2026Free to ask. We pass your request to lenders and brokers in our network. A HECM needs HUD-approved counseling before the lender can process it.
How is the initial principal limit calculated?
The estimated initial principal limit comes from the principal limit factor table, which assigns a factor to a borrower’s age and the current expected rate. The lender multiplies the lesser of the home’s appraised value and the maximum claim amount by that factor. For 2026 the maximum claim amount is $1,249,125, so a home appraised above that figure is capped at it for this calculation.
Enter your own numbers below. The expected rate is your own assumption about the rate a lender would quote you — this page does not set one for you.
If two people borrow together, use the younger borrower’s age — the factor is based on the youngest borrower.
Your own assumption, labelled here as an example only — a lender quotes the actual expected rate when you apply.
Capped at the 2026 maximum claim amount of $1,249,125 for this estimate.
Free to ask. We pass your request to lenders and brokers in our network. A HECM needs HUD-approved counseling before the lender can process it.
Estimate only. Not an offer or an approval. Before closing costs, the upfront mortgage insurance premium, and paying off any existing mortgage. The lender sets the actual amount when you apply.
A reverse mortgage is a loan from a private lender. You still keep paying property taxes, homeowners insurance and upkeep on the home, and the loan balance grows over time as interest is added. HUD-approved counseling is required before a lender can process a HECM application.
| Age of the youngest borrower | 75 |
|---|---|
| Home appraised value | $165,000 |
| Expected rate | 7.75% (the reader’s own assumption, shown as an example) |
| Principal limit factor (current table) | 0.370 |
| Estimated initial principal limit | $61,050 |
Example only, matching the estimator above: the 2026 maximum claim amount of $1,249,125 does not bind for a home appraised at $165,000, so the estimate is the appraised value times the factor. The worked example in the principal limit table’s documentation used a $151,725 maximum claim amount from an earlier year for the same inputs; this page uses the current table and the current limit. Enter your own numbers in the estimator above to get your own estimate. This example shows only the estimated initial principal limit — not a monthly, tenure or term payment.
What is a reverse mortgage?
A reverse mortgage is a home loan that lets homeowners age 62 and older convert part of their home equity into cash without monthly mortgage payments. You keep paying property taxes, homeowners insurance, any HOA dues and upkeep, and the balance grows over time. The loan comes due when the last borrower dies, sells the home or moves out for good, or sooner if the taxes, insurance or upkeep fall behind. An eligible non-borrowing spouse may be able to stay after the borrower dies or spends more than 12 months in a row in a care facility. It is a loan from a private lender, not a grant. See our reverse mortgage overview for how these loans work in more detail.
What does the estimate not include?
The estimated initial principal limit is before closing costs, the upfront mortgage insurance premium and paying off any existing mortgage. It is not a monthly, tenure or term payment, and it is not an offer or approval. The lender sets the actual amount you could receive when you apply, and it depends on the expected rate the lender quotes, the final appraisal, and the loan’s own costs and fees.
Is counseling required?
Yes. HUD-approved counseling is required before a lender can process a HECM application, and the counseling session must cover how the loan works, its costs and its obligations. This estimator is not counseling and does not replace it.
Sources
- HUD’s principal limit factor table — the source of the factors this estimator uses.
- The maximum claim amount for 2026 is $1,249,125 for all areas.
What this estimator is not
This estimator produces an approximate initial principal limit only, from the current principal limit factor table and the numbers you enter. It is not a loan offer, an approval, a rate lock, a credit decision, or a guarantee of the amount, rate or terms any specific lender will actually offer you. The lender sets the actual amount when you apply, based on the expected rate it quotes, the final appraisal and the loan’s costs and fees.
FreeRateUpdate operates a network of licensed lenders and brokers and may be compensated if you are matched with and choose to work with a network lender. This estimator does not favor, rank or discourage any specific lender or product in the network.
Disclosure: This is general information, not advice about your specific situation.