How Much Money Can You Get From a Reverse Mortgage?
Quick answer
How much you can get from a reverse mortgage depends mainly on three things: the age of the youngest borrower, your home's appraised value (up to the FHA limit of $1,249,125 in 2026), and current interest rates. Most eligible borrowers can access roughly 40%–65% of their home's value. You then choose how to receive it: a lump sum, a growing line of credit, fixed monthly payments, or a combination — whichever fits your goals.
The most common first question is simple: how much money can I actually get? The honest answer is that it depends on a few specific factors — and you also get to choose how the money reaches you. Here is how the amount is calculated and the payout options available.
The Three Factors That Set Your Amount
Your available proceeds (the 'principal limit') are driven by: 1) Age — the older the youngest borrower, the more you can access, because the calculation is based on life expectancy. 2) Home value — your home's appraised value counts up to the FHA lending limit ($1,249,125 in 2026); higher-value homes may look at a proprietary jumbo program instead. 3) Interest rates — lower expected rates generally allow a higher principal limit. Any existing mortgage is paid off first from the proceeds.
A Realistic Example
Suppose a 72-year-old owns a $700,000 home free and clear. Depending on rates, a typical HECM might make roughly $300,000–$390,000 in net proceeds available. If that homeowner still owed $100,000 on a traditional mortgage, that balance would be paid off first, and the remainder would be available to them. Your exact numbers require a personalized quote — these ranges are illustrations, not promises.
Payout Option 1: Line of Credit (Often the Smartest)
With a HECM line of credit, you draw only what you need, when you need it, and pay interest only on what you've actually used. The unused portion grows over time at the same rate the loan charges — a feature unique to the HECM. Many financial planners consider the growing line of credit the most powerful way to use a reverse mortgage as a standby resource.
Payout Option 2: Lump Sum, Monthly, or a Mix
You can take a lump sum at closing (useful for paying off an existing mortgage or a large expense), fixed monthly payments (tenure for life in the home, or term for a set number of years) to supplement income, or a combination — for example, some cash now plus a line of credit for later. The right structure depends on whether your goal is income, a safety net, or eliminating a monthly payment.
How to Find Your Real Number
The only way to know your actual figure is a personalized estimate based on your age, home value, and current rates. Our calculator gives you a quick ballpark, and Miguel can walk you through a precise quote and which payout structure fits your situation — with no obligation.
Key takeaways
- Your amount depends on the youngest borrower's age, home value (up to $1,249,125 in 2026), and interest rates.
- Most eligible borrowers can access roughly 40%–65% of their home's value.
- Any existing mortgage is paid off first from the proceeds.
- You choose how to receive funds: lump sum, line of credit, monthly payments, or a mix.
- A HECM line of credit grows on the unused balance over time — a unique advantage.
Frequently asked questions
What percentage of my home's value can I get?
Most eligible borrowers can access roughly 40%–65% of the home's value. The exact share rises with the age of the youngest borrower and falls with higher interest rates.
Does an existing mortgage reduce what I receive?
Yes. Any existing mortgage must be paid off first using the reverse mortgage proceeds. Whatever remains after that payoff is available to you.
Which payout option is best?
It depends on your goal. A growing line of credit is popular as a flexible safety net; monthly payments suit income needs; a lump sum suits paying off a mortgage or a large one-time expense. Many people combine them.
Can the amount available ever increase later?
With a line of credit, the unused portion grows over time, so more becomes available the longer you leave it untouched. You can also potentially refinance into a new HECM if your home value or the FHA limit rises significantly.