Quick Answer:
The amount you can get from a reverse mortgage depends on your age, home value, and existing mortgage balance. Most homeowners 62+ with $400K+ homes can access $150K-$400K in tax-free proceeds.
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How the Reverse Mortgage Calculation Works
The amount you can receive from a reverse mortgage is calculated using a formula established by the Federal Housing Administration (FHA):
Principal Limit = Home Value × Principal Limit Factor (PLF)
Net Proceeds = Principal Limit - Closing Costs - Mortgage Payoff
What is the Principal Limit Factor (PLF)?
The PLF is a percentage determined by your age (or the youngest borrower's age if married) and current interest rates. The FHA publishes official PLF tables that lenders must use.
Key insight: The older you are, the higher your PLF, which means you can borrow a larger percentage of your home's value.
Principal Limit Factors (PLF) by Age
These PLF rates are based on an expected interest rate of 6.0% (typical as of 2025). Actual rates vary by lender and market conditions.
| Age | PLF | Example at $500K Home |
|---|---|---|
| 62 | 37.6% | $188,000 |
| 65 | 39.7% | $198,500 |
| 70 | 43.3% | $216,500 |
| 75 | 46.1% | $230,500 |
| 80 | 50.5% | $252,500 |
| 85 | 56.4% | $282,000 |
| 90+ | 63.1% | $315,500 |
Source: HUD HECM Principal Limit Factor Tables (2025). Assumes 6.0% expected rate.
What Affects How Much You Can Get?
1. Your Age (Most Important Factor)
The younger borrower's age determines the PLF. If you're married, the loan is based on the YOUNGER spouse's age to protect the surviving spouse.
Example: Husband is 78, wife is 71. Loan is calculated using age 71 PLF (43.8%) to ensure wife is protected if husband passes away first.
2. Your Home's Appraised Value
The FHA sets a maximum lending limit each year. For 2025, that limit is $1,209,750. If your home is worth more than this, you'll need a proprietary/jumbo reverse mortgage product.
3. Current Interest Rates
Higher interest rates mean lower PLF percentages (and less you can borrow). When rates are low, your proceeds increase.
4. Your Existing Mortgage Balance
If you have an existing mortgage, it must be paid off first from your reverse mortgage proceeds. The remaining amount is what you receive.
Important: Even if you have a mortgage, you can still get a reverse mortgage! In fact, 60% of reverse mortgage borrowers use the proceeds to pay off an existing mortgage and eliminate monthly payments.
5. Closing Costs
Typical reverse mortgage closing costs range from $10,000 to $20,000, depending on your home's value. These costs are deducted from your principal limit.
Reverse Mortgage Calculation Examples
Example 1: Paid-Off Home in Orange County
- Borrower: 73-year-old widow
- Property: Single-family home in Irvine, CA
- Home value: $875,000
- Existing mortgage: $0 (paid off)
- Age 73 PLF: 44.8%
Calculation:
- Principal limit: $875,000 × 44.8% = $392,000
- Less: Upfront MIP (2%): -$17,500
- Less: Origination fee: -$6,000
- Less: Other closing costs: -$8,500
- Less: Existing mortgage: -$0
Net proceeds: ~$360,000
Tax-free cash available to the borrower
Example 2: Home with Existing Mortgage
- Borrower: 68-year-old married couple
- Property: Townhouse in Mission Viejo, CA
- Home value: $650,000
- Existing mortgage: $185,000
- Age 68 PLF: 41.7%
Calculation:
- Principal limit: $650,000 × 41.7% = $271,050
- Less: Upfront MIP (2%): -$13,000
- Less: Origination fee: -$6,000
- Less: Other closing costs: -$7,500
- Less: Existing mortgage: -$185,000
Net proceeds: ~$59,550
Plus: $185,000 mortgage is paid off (no more monthly payment!)
Example 3: High-Value Home (Jumbo Product)
- Borrower: 76-year-old single homeowner
- Property: Single-family home in Newport Beach, CA
- Home value: $2,100,000
- Existing mortgage: $425,000
- Note: Above HECM limit, needs proprietary/jumbo product
Calculation (Jumbo Product):
- Principal limit: $2,100,000 × 45% = $945,000
- Less: Closing costs: -$35,000
- Less: Existing mortgage: -$425,000
Net proceeds: ~$485,000
Requires proprietary reverse mortgage (consult specialist)
How to Increase Your Reverse Mortgage Proceeds
1. Wait Until You're Older
Your PLF increases with age. Waiting just a few years can significantly increase what you can borrow:
Example: $500,000 Home, No Mortgage
- At age 65: ~$165,000 proceeds
- At age 70: ~$185,000 proceeds (+$20K)
- At age 75: ~$205,000 proceeds (+$40K from age 65)
- At age 80: ~$230,000 proceeds (+$65K from age 65)
2. Pay Down Your Existing Mortgage
Every dollar you pay toward your mortgage increases your net proceeds dollar-for-dollar (since the mortgage must be paid off first).
3. Improve Your Home's Value
Strategic renovations before the appraisal can increase your borrowing capacity:
- Kitchen/bathroom updates
- Curb appeal improvements
- Necessary repairs (roof, HVAC)
- Fresh paint and flooring
4. Apply When Interest Rates Are Low
Lower expected interest rates = higher PLF = more you can borrow. Monitor rate trends and apply when rates dip.
5. Consider Proprietary/Jumbo Products
If your home is worth more than the HECM limit ($1,209,750 in 2025), proprietary reverse mortgages can provide access to higher loan amounts.
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Frequently Asked Questions
What is the maximum reverse mortgage amount in 2025?
For HECM loans, the maximum is based on the FHA lending limit of $1,209,750. However, the actual amount you receive depends on your age and the PLF. For proprietary/jumbo reverse mortgages, limits can extend to $4 million or more.
Can I get $200,000 from my reverse mortgage?
Possibly, depending on your age and home value. As a general rule:
- Age 70+ with $500K+ home value: Likely yes
- Age 65-69 with $600K+ home value: Possible
- Age 62-64: Would need $700K+ home value
Use our calculator above to see your specific amount.
How accurate is this calculator?
Our calculator uses the official HUD HECM PLF tables and 2025 lending limits. Estimates are typically within 5-10% of actual approved amounts. Final amounts depend on your home's appraised value, credit review, and specific lender terms.
Do I have to take all the money at once?
No! Most borrowers choose a Line of Credit, which lets you take money as needed. Unused funds actually GROW over time. Learn more in our Line of Credit guide.