Reverse Mortgage Line of Credit Calculator
This free tool helps you estimate how the unused portion of your reverse mortgage line of credit (LOC) can grow over time, giving you more access to cash in the future without taking on new debt. Whether you are exploring an FHA HECM for ages 62 and older or a Proprietary Jumbo Reverse Mortgage for ages 55 and older, this calculator shows how your available credit can increase as your unused balance earns guaranteed growth each year. Simply enter your home value, current mortgage balance, and the amount you plan to draw at closing. The calculator will estimate your principal limit, your initial and unused line of credit, and how that unused portion compounds over 5, 10, 15, and 20 years. This helps you visualize how a reverse mortgage can provide built-in financial flexibility by allowing your unused funds to grow automatically and tax free, creating a stronger safety net for your retirement years.
❓ FAQ Section
How does a Reverse Mortgage Line of Credit grow over time?
The unused portion of your reverse mortgage line of credit increases at a guaranteed growth rate based on your loan’s interest rate and mortgage insurance premium (for HECM). This means your available funds can grow even if your home value stays the same.
What’s the difference between FHA HECM >62 and Jumbo Proprietary >55?
The FHA HECM is a government-insured reverse mortgage available to homeowners aged 62 and older, capped at the $1,209,750 lending limit.
Jumbo proprietary loans are designed for higher-value homes and available to those aged 55 and older, allowing you to leverage your home’s full value above the FHA cap for potentially larger principal limits and more flexible terms.
Does the line of credit growth depend on home appreciation?
No. The growth rate applies to the unused portion of your credit line, not your home’s market value. Your LOC balance grows based on your program’s interest and MIP rate—not your property’s appreciation or depreciation.
Can I access my line of credit anytime?
Yes. As long as your loan remains active and in good standing (you live in the home, pay property taxes, and maintain insurance), you can draw funds from your line of credit whenever needed, up to your available balance.
Is the growth feature available on both FHA and Jumbo programs?
Yes, but they work differently. HECM loans grow at the note rate plus 0.5% MIP, while Jumbo programs use a fixed growth rate (typically 1.5%). This calculator reflects those differences automatically when you select your product type.
How do I get a personalized reverse mortgage quote?
After reviewing your estimate, you can request a free, no-obligation consultation with a licensed Reverse Mortgage Advisor to receive a detailed analysis.
Disclaimer: For Educational Purposes Only
The information, tools, and calculators available on The Retirement Dilemma website are provided exclusively for educational and informational purposes. Their goal is to help you understand how a reverse mortgage may fit within your overall retirement strategy. This material should not be considered financial, legal, or tax advice.
All content is developed and reviewed by reverse mortgage professionals with decades of combined experience in mortgage lending, underwriting, and real estate. However, every financial situation is unique. We strongly encourage you to consult with a qualified financial advisor, tax professional, attorney, Reverse Mortgage Advisor, or a HUD-approved housing counselor before making any financial decisions related to reverse mortgages.
To maintain accuracy and reliability, our educational content references well-established and nationally recognized sources, including HUD, CFPB, AARP, and other trusted organizations specializing in retirement and housing.
Our mission is to provide unbiased, transparent, and practical education—empowering you to make informed, confident decisions about your financial future.
