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Net proceeds on $300,000 by age
| Age | 5% expected rate | 6% expected rate | 7% expected rate |
|---|---|---|---|
| 62 | $112,000 | $96,100 | $82,600 |
| 65 | $118,000 | $102,400 | $88,900 |
| 70 | $128,500 | $113,500 | $100,000 |
| 75 | $136,600 | $121,900 | $109,000 |
| 80 | $149,200 | $135,400 | $122,800 |
| 85 | $166,300 | $153,700 | $142,300 |
No existing mortgage; other closing costs not deducted. Expected rates are examples.
Worked example (age 70, 6%)
Factor 0.415 × $300,000 = $124,500 principal limit. Minus $6,000 upfront MIP and $5,000 origination = $113,500. First-year draws are limited to about $63,700.
With a mortgage to pay off
| Mortgage balance | Net at 70, 6% |
|---|---|
| $0 | $113,500 |
| $30,000 | $83,500 |
| $60,000 | $53,500 |
| $90,000 | $23,500 |
An estimate from HUD’s published factors. A lender’s quote uses your exact expected rate, appraisal, closing costs and any set-asides, so it will differ. HUD-approved counseling is required before you apply.
Sources and assumptions
- HUD principal limit factor tables (General Table, ages 62–99, expected rates 3%–18.875%)
- HUD Mortgagee Letter 2017-12 (2% initial MIP of the maximum claim amount, 0.5% annual MIP, principal limit factors from October 2, 2017)
- HUD Mortgagee Letter 2025-22 (2026 HECM maximum claim amount $1,249,125)
- HUD HECM rule (Federal Register, 2016) (origination fee: greater of $2,500 or 2% of the first $200,000 plus 1% above, capped at $6,000)
Related
- Reverse mortgage calculator
- Reverse mortgage on $400k
- Reverse mortgage on $500k
- Reverse mortgage on $750k
Frequently asked questions
How much reverse mortgage can I get on a $300,000 house?
About $113,500 at age 70 with a 6% expected rate and no mortgage, after upfront MIP and origination. At 62 it is about $96,100.
Does the house have to be paid off?
No, but the reverse mortgage must pay off the existing loan at closing, which reduces what is left for you.