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Net proceeds on $400,000 by age
| Age | 5% expected rate | 6% expected rate | 7% expected rate |
|---|---|---|---|
| 62 | $150,000 | $128,800 | $110,800 |
| 65 | $158,000 | $137,200 | $119,200 |
| 70 | $172,000 | $152,000 | $134,000 |
| 75 | $182,800 | $163,200 | $146,000 |
| 80 | $199,600 | $181,200 | $164,400 |
| 85 | $222,400 | $205,600 | $190,400 |
No existing mortgage; other closing costs not deducted. Expected rates are examples.
Worked example (age 70, 6%)
Factor 0.415 × $400,000 = $166,000 principal limit. Minus $8,000 upfront MIP and $6,000 origination = $152,000. First-year draws are limited to about $85,600.
With a mortgage to pay off
| Mortgage balance | Net at 70, 6% |
|---|---|
| $0 | $152,000 |
| $40,000 | $112,000 |
| $80,000 | $72,000 |
| $120,000 | $32,000 |
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 $300k
- Reverse mortgage on $500k
- Reverse mortgage on $750k
Frequently asked questions
How much reverse mortgage can I get on a $400,000 house?
About $152,000 at age 70 with a 6% expected rate and no mortgage, after upfront MIP and origination. At 62 it is about $128,800.
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.