Your principal limit = home value (up to the FHA HECM limit) × a Principal Limit Factor set by your age and the expected rate. Older age and a lower rate raise the amount. From it, subtract any existing mortgage payoff and costs to get your available proceeds.
What the calculation uses
Three inputs drive the estimate: the youngest borrower’s age, the appraised value (capped at the FHA HECM lending limit), and the expected rate. These produce your principal limit. Any existing mortgage is paid off first from that limit, and closing costs come out too.
Turning the limit into cash
Your available proceeds are what remains after payoff and costs. You then choose how to receive them — lump sum, line of credit, or monthly. For higher-value California homes above the FHA limit, a proprietary reverse may yield more; we run both.
| Factor | Effect on amount |
|---|---|
| Older age | Increases proceeds |
| Higher home value | Increases (up to FHA limit) |
| Lower expected rate | Increases proceeds |
| Existing mortgage | Reduces net cash |
| Closing costs / MIP | Reduce net cash |
Frequently asked questions
Can you give me an exact number?
We can produce a personalized estimate quickly once we know the youngest borrower’s age, your home value, and any existing mortgage. Call or request a quote.
Does an existing mortgage disqualify me?
No — the reverse mortgage pays off your current mortgage first; you simply receive less remaining cash. Eliminating that monthly payment is often the main benefit.
Is the estimate a guarantee?
No. Figures are illustrative until an appraisal and current rates are locked.
Save Financial is a California-licensed mortgage brokerage (NMLS #377740, DRE #01875766). Figures are illustrative for 2026 and not an offer of credit.