Reverse Mortgage worksheet

1. Estimated principal limit: $192,150.00

1. HUD counts the home's value here, because it's under the national limit for 2026

   $\text{\hspace{0.17em}limit}\mathrm{\$1,249,125.00}$$=\text{\hspace{0.17em}value counted}\mathrm{\$350,000.00}$

2. Look up HUD's factor for age 85. Your rate is rounded to the nearest 1/8 of a percent first

   $\mathrm{6\%}\text{\hspace{0.17em}rounds to}$$=\mathrm{6\%}$

3. Multiply by the factor to get your principal limit, the most this loan can start with

   $\mathrm{\$350,000.00}\times 0.549$$=\mathrm{\$192,150.00}$

4. Find the upfront mortgage insurance: 2% of the value counted

   $\mathrm{\$350,000.00}\times \mathrm{2\%}$$=\mathrm{\$7,000.00}$

5. Add what must be paid at closing: insurance, the highest allowed origination fee, other costs and any mortgage payoff

   $\mathrm{\$7,000.00}+\mathrm{\$5,500.00}+\mathrm{\$2,600.00}+\mathrm{\$65,000.00}$$=\mathrm{\$80,100.00}$

6. Subtract those from the principal limit. This is what's left for you, in total

   $\mathrm{\$192,150.00}-\mathrm{\$80,100.00}$$=\mathrm{\$112,050.00}$

7. In the first year, you can use the greater of 60% of the limit, or the closing items plus 10% of the limit. Here 60% is larger

   $\mathrm{\$192,150.00}\times \mathrm{60\%}$$=\mathrm{\$115,290.00}$

8. Subtract the closing items to see the cash you could use in the first 12 months

   $\mathrm{\$115,290.00}-\mathrm{\$80,100.00}$$=\mathrm{\$35,190.00}$

2. Estimated principal limit: $107,520.00

1. HUD counts the home's value here, because it's under the national limit for 2026

   $\text{\hspace{0.17em}limit}\mathrm{\$1,249,125.00}$$=\text{\hspace{0.17em}value counted}\mathrm{\$320,000.00}$

2. Look up HUD's factor for age 68. Your rate is rounded to the nearest 1/8 of a percent first

   $\mathrm{7.5\%}\text{\hspace{0.17em}rounds to}$$=\mathrm{7.5\%}$

3. Multiply by the factor to get your principal limit, the most this loan can start with

   $\mathrm{\$320,000.00}\times 0.336$$=\mathrm{\$107,520.00}$

4. Find the upfront mortgage insurance: 2% of the value counted

   $\mathrm{\$320,000.00}\times \mathrm{2\%}$$=\mathrm{\$6,400.00}$

5. Add what must be paid at closing: insurance, the highest allowed origination fee, other costs and any mortgage payoff

   $\mathrm{\$6,400.00}+\mathrm{\$5,200.00}+\mathrm{\$3,200.00}+\mathrm{\$40,000.00}$$=\mathrm{\$54,800.00}$

6. Subtract those from the principal limit. This is what's left for you, in total

   $\mathrm{\$107,520.00}-\mathrm{\$54,800.00}$$=\mathrm{\$52,720.00}$

7. In the first year, you can use the greater of 60% of the limit, or the closing items plus 10% of the limit. Here the second is larger, and it can't pass the limit

   $\mathrm{\$54,800.00}+\mathrm{\$107,520.00}\times \mathrm{10\%}$$=\mathrm{\$65,552.00}$

8. Subtract the closing items to see the cash you could use in the first 12 months

   $\mathrm{\$65,552.00}-\mathrm{\$54,800.00}$$=\mathrm{\$10,752.00}$

3. Estimated principal limit: $226,080.00

1. HUD counts the home's value here, because it's under the national limit for 2026

   $\text{\hspace{0.17em}limit}\mathrm{\$1,249,125.00}$$=\text{\hspace{0.17em}value counted}\mathrm{\$480,000.00}$

2. Look up HUD's factor for age 78. Your rate is rounded to the nearest 1/8 of a percent first

   $\mathrm{6\%}\text{\hspace{0.17em}rounds to}$$=\mathrm{6\%}$

3. Multiply by the factor to get your principal limit, the most this loan can start with

   $\mathrm{\$480,000.00}\times 0.471$$=\mathrm{\$226,080.00}$

4. Find the upfront mortgage insurance: 2% of the value counted

   $\mathrm{\$480,000.00}\times \mathrm{2\%}$$=\mathrm{\$9,600.00}$

5. Add what must be paid at closing: insurance, the highest allowed origination fee, other costs and any mortgage payoff

   $\mathrm{\$9,600.00}+\mathrm{\$6,000.00}+\mathrm{\$2,400.00}+\mathrm{\$70,000.00}$$=\mathrm{\$88,000.00}$

6. Subtract those from the principal limit. This is what's left for you, in total

   $\mathrm{\$226,080.00}-\mathrm{\$88,000.00}$$=\mathrm{\$138,080.00}$

7. In the first year, you can use the greater of 60% of the limit, or the closing items plus 10% of the limit. Here 60% is larger

   $\mathrm{\$226,080.00}\times \mathrm{60\%}$$=\mathrm{\$135,648.00}$

8. Subtract the closing items to see the cash you could use in the first 12 months

   $\mathrm{\$135,648.00}-\mathrm{\$88,000.00}$$=\mathrm{\$47,648.00}$

4. Estimated principal limit: $166,140.00

1. HUD counts the home's value here, because it's under the national limit for 2026

   $\text{\hspace{0.17em}limit}\mathrm{\$1,249,125.00}$$=\text{\hspace{0.17em}value counted}\mathrm{\$390,000.00}$

2. Look up HUD's factor for age 68. Your rate is rounded to the nearest 1/8 of a percent first

   $\mathrm{5.5\%}\text{\hspace{0.17em}rounds to}$$=\mathrm{5.5\%}$

3. Multiply by the factor to get your principal limit, the most this loan can start with

   $\mathrm{\$390,000.00}\times 0.426$$=\mathrm{\$166,140.00}$

4. Find the upfront mortgage insurance: 2% of the value counted

   $\mathrm{\$390,000.00}\times \mathrm{2\%}$$=\mathrm{\$7,800.00}$

5. Add what must be paid at closing: insurance, the highest allowed origination fee, other costs and any mortgage payoff

   $\mathrm{\$7,800.00}+\mathrm{\$5,900.00}+\mathrm{\$3,000.00}+\mathrm{\$65,000.00}$$=\mathrm{\$81,700.00}$

6. Subtract those from the principal limit. This is what's left for you, in total

   $\mathrm{\$166,140.00}-\mathrm{\$81,700.00}$$=\mathrm{\$84,440.00}$

7. In the first year, you can use the greater of 60% of the limit, or the closing items plus 10% of the limit. Here 60% is larger

   $\mathrm{\$166,140.00}\times \mathrm{60\%}$$=\mathrm{\$99,684.00}$

8. Subtract the closing items to see the cash you could use in the first 12 months

   $\mathrm{\$99,684.00}-\mathrm{\$81,700.00}$$=\mathrm{\$17,984.00}$

5. Estimated principal limit: $271,150.00

1. HUD counts the home's value here, because it's under the national limit for 2026

   $\text{\hspace{0.17em}limit}\mathrm{\$1,249,125.00}$$=\text{\hspace{0.17em}value counted}\mathrm{\$550,000.00}$

2. Look up HUD's factor for age 85. Your rate is rounded to the nearest 1/8 of a percent first

   $\mathrm{7.5\%}\text{\hspace{0.17em}rounds to}$$=\mathrm{7.5\%}$

3. Multiply by the factor to get your principal limit, the most this loan can start with

   $\mathrm{\$550,000.00}\times 0.493$$=\mathrm{\$271,150.00}$

4. Find the upfront mortgage insurance: 2% of the value counted

   $\mathrm{\$550,000.00}\times \mathrm{2\%}$$=\mathrm{\$11,000.00}$

5. Add what must be paid at closing: insurance, the highest allowed origination fee, other costs and any mortgage payoff

   $\mathrm{\$11,000.00}+\mathrm{\$6,000.00}+\mathrm{\$4,000.00}+\mathrm{\$50,000.00}$$=\mathrm{\$71,000.00}$

6. Subtract those from the principal limit. This is what's left for you, in total

   $\mathrm{\$271,150.00}-\mathrm{\$71,000.00}$$=\mathrm{\$200,150.00}$

7. In the first year, you can use the greater of 60% of the limit, or the closing items plus 10% of the limit. Here 60% is larger

   $\mathrm{\$271,150.00}\times \mathrm{60\%}$$=\mathrm{\$162,690.00}$

8. Subtract the closing items to see the cash you could use in the first 12 months

   $\mathrm{\$162,690.00}-\mathrm{\$71,000.00}$$=\mathrm{\$91,690.00}$

6. Estimated principal limit: $250,800.00

1. HUD counts the home's value here, because it's under the national limit for 2026

   $\text{\hspace{0.17em}limit}\mathrm{\$1,249,125.00}$$=\text{\hspace{0.17em}value counted}\mathrm{\$440,000.00}$

2. Look up HUD's factor for age 85. Your rate is rounded to the nearest 1/8 of a percent first

   $\mathrm{5.5\%}\text{\hspace{0.17em}rounds to}$$=\mathrm{5.5\%}$

3. Multiply by the factor to get your principal limit, the most this loan can start with

   $\mathrm{\$440,000.00}\times 0.57$$=\mathrm{\$250,800.00}$

4. Find the upfront mortgage insurance: 2% of the value counted

   $\mathrm{\$440,000.00}\times \mathrm{2\%}$$=\mathrm{\$8,800.00}$

5. Add what must be paid at closing: insurance, the highest allowed origination fee, other costs and any mortgage payoff

   $\mathrm{\$8,800.00}+\mathrm{\$6,000.00}+\mathrm{\$3,200.00}+\mathrm{\$47,500.00}$$=\mathrm{\$65,500.00}$

6. Subtract those from the principal limit. This is what's left for you, in total

   $\mathrm{\$250,800.00}-\mathrm{\$65,500.00}$$=\mathrm{\$185,300.00}$

7. In the first year, you can use the greater of 60% of the limit, or the closing items plus 10% of the limit. Here 60% is larger

   $\mathrm{\$250,800.00}\times \mathrm{60\%}$$=\mathrm{\$150,480.00}$

8. Subtract the closing items to see the cash you could use in the first 12 months

   $\mathrm{\$150,480.00}-\mathrm{\$65,500.00}$$=\mathrm{\$84,980.00}$

7. Estimated principal limit: $154,560.00

1. HUD counts the home's value here, because it's under the national limit for 2026

   $\text{\hspace{0.17em}limit}\mathrm{\$1,249,125.00}$$=\text{\hspace{0.17em}value counted}\mathrm{\$460,000.00}$

2. Look up HUD's factor for age 68. Your rate is rounded to the nearest 1/8 of a percent first

   $\mathrm{7.5\%}\text{\hspace{0.17em}rounds to}$$=\mathrm{7.5\%}$

3. Multiply by the factor to get your principal limit, the most this loan can start with

   $\mathrm{\$460,000.00}\times 0.336$$=\mathrm{\$154,560.00}$

4. Find the upfront mortgage insurance: 2% of the value counted

   $\mathrm{\$460,000.00}\times \mathrm{2\%}$$=\mathrm{\$9,200.00}$

5. Add what must be paid at closing: insurance, the highest allowed origination fee, other costs and any mortgage payoff

   $\mathrm{\$9,200.00}+\mathrm{\$6,000.00}+\mathrm{\$2,100.00}+\mathrm{\$52,500.00}$$=\mathrm{\$69,800.00}$

6. Subtract those from the principal limit. This is what's left for you, in total

   $\mathrm{\$154,560.00}-\mathrm{\$69,800.00}$$=\mathrm{\$84,760.00}$

7. In the first year, you can use the greater of 60% of the limit, or the closing items plus 10% of the limit. Here 60% is larger

   $\mathrm{\$154,560.00}\times \mathrm{60\%}$$=\mathrm{\$92,736.00}$

8. Subtract the closing items to see the cash you could use in the first 12 months

   $\mathrm{\$92,736.00}-\mathrm{\$69,800.00}$$=\mathrm{\$22,936.00}$

8. Estimated principal limit: $160,860.00

1. HUD counts the home's value here, because it's under the national limit for 2026

   $\text{\hspace{0.17em}limit}\mathrm{\$1,249,125.00}$$=\text{\hspace{0.17em}value counted}\mathrm{\$420,000.00}$

2. Look up HUD's factor for age 72. Your rate is rounded to the nearest 1/8 of a percent first

   $\mathrm{6.75\%}\text{\hspace{0.17em}rounds to}$$=\mathrm{6.75\%}$

3. Multiply by the factor to get your principal limit, the most this loan can start with

   $\mathrm{\$420,000.00}\times 0.383$$=\mathrm{\$160,860.00}$

4. Find the upfront mortgage insurance: 2% of the value counted

   $\mathrm{\$420,000.00}\times \mathrm{2\%}$$=\mathrm{\$8,400.00}$

5. Add what must be paid at closing: insurance, the highest allowed origination fee, other costs and any mortgage payoff

   $\mathrm{\$8,400.00}+\mathrm{\$6,000.00}+\mathrm{\$3,400.00}+\mathrm{\$55,000.00}$$=\mathrm{\$72,800.00}$

6. Subtract those from the principal limit. This is what's left for you, in total

   $\mathrm{\$160,860.00}-\mathrm{\$72,800.00}$$=\mathrm{\$88,060.00}$

7. In the first year, you can use the greater of 60% of the limit, or the closing items plus 10% of the limit. Here 60% is larger

   $\mathrm{\$160,860.00}\times \mathrm{60\%}$$=\mathrm{\$96,516.00}$

8. Subtract the closing items to see the cash you could use in the first 12 months

   $\mathrm{\$96,516.00}-\mathrm{\$72,800.00}$$=\mathrm{\$23,716.00}$

9. Estimated principal limit: $213,750.00

1. HUD counts the home's value here, because it's under the national limit for 2026

   $\text{\hspace{0.17em}limit}\mathrm{\$1,249,125.00}$$=\text{\hspace{0.17em}value counted}\mathrm{\$375,000.00}$

2. Look up HUD's factor for age 85. Your rate is rounded to the nearest 1/8 of a percent first

   $\mathrm{5.5\%}\text{\hspace{0.17em}rounds to}$$=\mathrm{5.5\%}$

3. Multiply by the factor to get your principal limit, the most this loan can start with

   $\mathrm{\$375,000.00}\times 0.57$$=\mathrm{\$213,750.00}$

4. Find the upfront mortgage insurance: 2% of the value counted

   $\mathrm{\$375,000.00}\times \mathrm{2\%}$$=\mathrm{\$7,500.00}$

5. Add what must be paid at closing: insurance, the highest allowed origination fee, other costs and any mortgage payoff

   $\mathrm{\$7,500.00}+\mathrm{\$5,750.00}+\mathrm{\$2,000.00}+\mathrm{\$70,000.00}$$=\mathrm{\$85,250.00}$

6. Subtract those from the principal limit. This is what's left for you, in total

   $\mathrm{\$213,750.00}-\mathrm{\$85,250.00}$$=\mathrm{\$128,500.00}$

7. In the first year, you can use the greater of 60% of the limit, or the closing items plus 10% of the limit. Here 60% is larger

   $\mathrm{\$213,750.00}\times \mathrm{60\%}$$=\mathrm{\$128,250.00}$

8. Subtract the closing items to see the cash you could use in the first 12 months

   $\mathrm{\$128,250.00}-\mathrm{\$85,250.00}$$=\mathrm{\$43,000.00}$

10. Estimated principal limit: $209,525.00

1. HUD counts the home's value here, because it's under the national limit for 2026

   $\text{\hspace{0.17em}limit}\mathrm{\$1,249,125.00}$$=\text{\hspace{0.17em}value counted}\mathrm{\$425,000.00}$

2. Look up HUD's factor for age 85. Your rate is rounded to the nearest 1/8 of a percent first

   $\mathrm{7.5\%}\text{\hspace{0.17em}rounds to}$$=\mathrm{7.5\%}$

3. Multiply by the factor to get your principal limit, the most this loan can start with

   $\mathrm{\$425,000.00}\times 0.493$$=\mathrm{\$209,525.00}$

4. Find the upfront mortgage insurance: 2% of the value counted

   $\mathrm{\$425,000.00}\times \mathrm{2\%}$$=\mathrm{\$8,500.00}$

5. Add what must be paid at closing: insurance, the highest allowed origination fee, other costs and any mortgage payoff

   $\mathrm{\$8,500.00}+\mathrm{\$6,000.00}+\mathrm{\$2,250.00}+\mathrm{\$60,000.00}$$=\mathrm{\$76,750.00}$

6. Subtract those from the principal limit. This is what's left for you, in total

   $\mathrm{\$209,525.00}-\mathrm{\$76,750.00}$$=\mathrm{\$132,775.00}$

7. In the first year, you can use the greater of 60% of the limit, or the closing items plus 10% of the limit. Here 60% is larger

   $\mathrm{\$209,525.00}\times \mathrm{60\%}$$=\mathrm{\$125,715.00}$

8. Subtract the closing items to see the cash you could use in the first 12 months

   $\mathrm{\$125,715.00}-\mathrm{\$76,750.00}$$=\mathrm{\$48,965.00}$