Where do these numbers come from?
- Instant answersResults update as you type.
- Private by designRuns in your browser. Nothing is sent.
- Share, print or citeCopy a link with your numbers.
Net proceeds on $500,000 by age
| Age | 5% expected rate | 6% expected rate | 7% expected rate |
|---|---|---|---|
| 62 | $189,000 | $162,500 | $140,000 |
| 65 | $199,000 | $173,000 | $150,500 |
| 70 | $216,500 | $191,500 | $169,000 |
| 75 | $230,000 | $205,500 | $184,000 |
| 80 | $251,000 | $228,000 | $207,000 |
| 85 | $279,500 | $258,500 | $239,500 |
No existing mortgage; other closing costs not deducted. Expected rates are examples.
Worked example (age 70, 6%)
Factor 0.415 × $500,000 = $207,500 principal limit. Minus $10,000 upfront MIP and $6,000 origination = $191,500. First-year draws are limited to about $108,500.
With a mortgage to pay off
| Mortgage balance | Net at 70, 6% |
|---|---|
| $0 | $191,500 |
| $50,000 | $141,500 |
| $100,000 | $91,500 |
| $150,000 | $41,500 |
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 $300k
- Reverse mortgage on $400k
- Reverse mortgage on $750k
Frequently asked questions
How much reverse mortgage can I get on a $500,000 house?
About $191,500 at age 70 with a 6% expected rate and no mortgage, after upfront MIP and origination. At 62 it is about $162,500.
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.