HECM line of credit growth calculator
How large a reverse mortgage line of credit would be on your home, and how much the unused part could grow over 10, 20 or 30 years. Built on HUD’s own tables, with the same pricing as my main calculator.
An estimate only, not a quote, an offer of credit or a commitment to lend, and not a substitute for a full and proper quote. Contact Ken for an accurate, complete quote on your home. Uses HUD’s principal limit factor tables, the 2026 FHA limit of $1,249,125, the HUD maximum origination fee and an estimate of third-party costs. Adjustable-rate HECM figures; the growth rate changes when the rate changes. Borrowers must keep paying property taxes, homeowner’s insurance and upkeep and live in the home. This material is not from HUD or FHA and was not approved by HUD, FHA or any government agency.
What the numbers mean
Why the line grows
The unused portion of a HECM line of credit grows at the same rate the loan balance would: the note rate plus the 0.50% annual FHA insurance premium. It is part of the loan contract, not an investment return.
Why it matters in planning
A line opened at 62 and left alone can be much larger at 80, when care costs or a market downturn are more likely. Advisors use it as a standby reserve alongside a portfolio. How the buffer strategy works →
What can change it
If rates rise, an adjustable line grows faster; if they fall, slower. The growth does not depend on the home’s value, and it stops only when the line is used or the loan ends.
Want the full picture, including monthly payments and HECM for Purchase? Use the main reverse mortgage calculator. Comparing against a bank line? HECM vs. HELOC.
What if home prices fall?
The line doesn’t shrink. Its growth is set by the loan’s rate, not the home’s value, and it can’t be frozen or reduced the way a bank HELOC can while you meet the loan obligations. Retirement researcher Wade Pfau, writing in 2014: the line of credit “will continue to grow without regard for the home’s subsequent value.” If the line ever exceeds what the house is worth, it is still yours to draw, and the non-recourse feature means no one owes the difference. More in the HELOC comparison →
On opening early versus waiting: in a 2019 example using today’s premium but 2019 interest rates, Pfau showed $102,500 of borrowing capacity at 62 growing to $351,544 by age 90 (before upfront costs), against $284,222 for a loan opened at 90. Use the “Open now, or wait?” fields above to run the same comparison on your home.
Sources: Pfau, Advisor Perspectives, December 9, 2014; Pfau, “Why Open a Reverse Mortgage Before It Is Actually Needed?”, Forbes, January 23, 2019. Dr. Pfau is not affiliated with Ideal Financial, Inc.
Written by Kenneth M. Adler
Every page on this site is written and maintained by me: the same person who answers the phone, runs your numbers, and handles your file start to finish. No call center, no hand-offs, no lead-selling. More about how I work →
Want to talk through the line of credit?
Leave your number and I’ll run the line of credit on your home and age at today’s pricing.
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- Your figures in writing before you commit to anything
- If opening a line now doesn’t make sense, I’ll say so
Want these numbers on your own home, in writing?
A calculator shows the math. A written estimate uses today’s pricing, your exact value and costs, and every program that fits.
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