HECM numbers HUD sets for 2026
| Item | 2026 figure | Source |
|---|---|---|
| Maximum claim amount (all areas) | $1,249,125 | HUD ML 2025-22, December 11, 2025 |
| Initial mortgage insurance premium | 2.00% of the maximum claim amount | HUD ML 2017-12 |
| Annual mortgage insurance premium | 0.50% of the outstanding balance | HUD ML 2017-12 |
| Principal limit factors | By age (62–99) and expected rate | HUD PLF table, on or after 10/2/17 |
| Minimum age | 62 | CFPB, last reviewed August 28, 2026 |
How the reverse mortgage amount is calculated
The calculator uses HUD's general table for ages 62 to 99 with expected rates from 3% to 12% in 1/8-point steps; it rounds your expected rate down to the nearest step and uses 3% for anything lower. The projection assumes the upfront costs and payoff are financed and that you draw nothing more (or, in the second figure, everything at closing). Your lender's quote shows how much you can draw at closing and in the first year, and how a line of credit option works.
Worked example
A 70-year-old with a $400,000 home and a 6.5% expected rate has a factor of 0.392, so the principal limit is $156,800. Upfront MIP is $8,000; with $6,000 origination and $4,000 of other costs and a $50,000 mortgage to pay off, $88,800 is left to take as cash, monthly payments or a line of credit.
How this calculator works, in plain language
A reverse mortgage lets homeowners 62 and older borrow against their home without monthly payments; the loan is repaid when the borrower no longer lives in the home. HUD decides how much you can borrow with a table: find your age and the expected interest rate, and it gives a percentage of your home's value (capped at the national limit). From that amount the calculator takes away the government insurance charge, the lender's fees and any mortgage that must be paid off. What's left is yours to use. Because you make no payments, the debt grows every month with interest and insurance, which is why the balance projection matters.
Reverse mortgage amounts by age
The same $400,000 home at a 6.5% expected rate, no existing mortgage, $6,000 origination and $4,000 of other costs, factors from HUD's table (downloaded October 2, 2026). Examples, not quotes.
| Scenario | PLF | Max claim amount | Principal limit | Upfront MIP | Cash available |
|---|---|---|---|---|---|
| Age 62, $400k home | 0.334 | $400,000 | $133,600 | $8,000 | $115,600 |
| Age 65, $400k home | 0.355 | $400,000 | $142,000 | $8,000 | $124,000 |
| Age 70, $400k home | 0.392 | $400,000 | $156,800 | $8,000 | $138,800 |
| Age 75, $400k home | 0.421 | $400,000 | $168,400 | $8,000 | $150,400 |
| Age 80, $400k home | 0.466 | $400,000 | $186,400 | $8,000 | $168,400 |
| Age 70, $1.5M home (capped) | 0.392 | $1,249,125 | $489,657 | $24,983 | $454,675 |
From 62 to 80 the principal limit rises from $133,600 to $186,400. The $1,500,000 home is capped at the $1,249,125 limit, so its factor applies to $1,249,125, not the full value, and its upfront MIP is $24,983.
Common reverse mortgage calculator mistakes
- Using the home's full value above the limit. HUD caps the value used at $1,249,125 in 2026.
- Forgetting the payoff. Any existing mortgage must be paid off from the proceeds first; if it's larger than what's available, the loan doesn't work.
- Ignoring balance growth. Interest plus 0.5% MIP compound monthly; over 10 to 20 years the debt can double.
- Stopping tax and insurance payments. HUD says borrowers may stay in the home as long as property taxes and homeowner's insurance are kept current; they remain your job.
- Not comparing options. Get quotes from several lenders, talk to a HUD-certified housing counselor, and compare a HELOC or downsizing.
This is an estimate for planning, not a loan offer. Your lender's quote is the place to confirm it.