The Reverse Mortgage Line of Credit, technically known as a HECM Line of Credit, is still unfamiliar territory for many in the financial and retirement planning space. But that’s changing, and for good reason. Retirees are starting to take notice, and if you’re not already paying attention, it might be time to start.

So what exactly is a reverse mortgage line of credit? At its core, it’s a way for homeowners 62 and older to unlock their home equity and turn it into an on-demand pool of funds, with no required monthly mortgage payments. But what makes the line of credit option unique is how flexible and powerful it really is.

Let’s start with the basics: a line of credit provides access to money that you can draw from when needed—or leave untouched if you don’t. You only accrue interest on the amount you actually use. This alone makes it an excellent safety net for retirement. Whether it’s for emergencies, unexpected expenses, or just a little fun, travel, grandkids, new hobbies, it’s money available when you need it, without the obligation of immediate repayment.

But here’s where it gets even better: when you choose the line of credit option with a reverse mortgage, your available credit actually grows over time, even if you don’t use it. That’s right. The unused portion of your line of credit increases at the same rate as your loan’s interest rate, plus an additional 1.25%. So if your interest rate is 2.5%, your line of credit grows at 3.75% annually. That growth is guaranteed.

This is something no traditional Home Equity Line of Credit (HELOC) can offer. With a HELOC, your available credit doesn’t grow, and in some cases, it can even be frozen or reduced by the lender. With a reverse mortgage line of credit, the growth is locked in, regardless of what the housing market does.

That makes it not just a safety net, but a strategic financial planning tool. You’re essentially locking in today’s home value and giving yourself a growing reserve of funds to use in the future. Even if home prices decline, your line of credit keeps growing, providing a hedge against volatility.

Of course, all the usual reverse mortgage qualifications apply. You need to be 62 or older, live in your primary residence, and have sufficient equity in the home. You also need to be able to cover basic expenses like property taxes, homeowners insurance, and maintenance. But once you qualify, the line of credit is one of several disbursement options—and one that offers serious long-term benefits.

In short: the reverse mortgage line of credit is a powerful tool that too many people are overlooking. Whether you want a financial backup plan, a source of flexible retirement income, or just the comfort of knowing it’s there, this option deserves a serious look.

Jan Jordan and Kelsey Jorck are Reverse Mortgage Specialists serving Fort Collins, Loveland, Greeley, Longmont, Dacono, Erie, Boulder, and surrounding areas across Colorado’s Front Range.  Click here to contact them and learn if reverse mortgage is right for you.