Reverse mortgages come in fixed (single lump sum) and adjustable (line of credit, monthly, or term) versions. A lower expected rate plus older age and higher value means a larger principal limit — the amount you can borrow. FHA mortgage insurance (MIP) also applies.
How the rate drives your proceeds
Lenders use an expected rate and your age to look up a Principal Limit Factor — the share of your home value you can access. A lower rate and an older borrower both increase that share. This is why two homeowners with identical homes can qualify for very different amounts.
Fixed vs. adjustable
Fixed-rate HECMs require taking a single lump sum at closing. Adjustable-rate HECMs are more flexible — you can take a growing line of credit, tenure (monthly for life), term payments, or a mix. The line-of-credit option is popular because the unused portion grows over time.
Mortgage insurance and costs
HECMs carry FHA mortgage insurance premium (MIP) — an upfront premium plus an annual premium on the balance — which funds the non-recourse guarantee. Add an origination fee and standard closing costs. Rates and premiums change; we quote current numbers for your scenario.
Frequently asked questions
Are reverse mortgage rates fixed or variable?
Both exist. Fixed-rate loans require a lump-sum draw; adjustable-rate loans allow a line of credit or monthly payments and are often more flexible.
Does the line of credit really grow?
Yes. On an adjustable HECM, the unused line of credit grows over time at the loan’s rate, potentially giving you access to more later.
Why does my age affect the rate/amount?
Older borrowers have a shorter expected loan term, so lenders can advance a larger share of the home’s value — a higher principal limit.
Save Financial is a California-licensed mortgage brokerage (NMLS #377740, DRE #01875766). Figures are illustrative for 2026 and not an offer of credit.