Enhance Your Retirement Plan

Is it better to secure a reverse mortgage now… or wait and hope conditions improve?

For a long time, the standard advice was to delay using a reverse mortgage for as long as possible. But the landscape has shifted. Program enhancements in 2013 and 2015 strengthened consumer protections and long-term program stability. As a result, many homeowners today are choosing to open a HECM line of credit earlier — not out of necessity, but because they understand the strategic advantages it can offer over time.

A growing number of borrowers are just turning 62, still working, and not planning to access any funds immediately. Instead, they see the HECM line of credit as a reliable way to preserve future financial flexibility and safeguard their retirement plan. For them, postponing often means missing out.

Here are three reasons why getting started sooner can be a smarter approach:

1. Future Borrowing Power Isn’t Promised

Your initial principal limit — the amount available through a HECM — is based on:

• Your age

• Current interest rates

• Your home’s appraised value

Age is predictable. Rates and home values are not.
Rising interest rates can significantly shrink how much you qualify for, and declining property values can erase hard-earned equity. Many assume waiting automatically increases their available proceeds, but market changes can easily work against you.

2. Delaying Means Missing Out on Years of Growth

One of the most valuable features of a HECM line of credit is that the unused portion grows over time at a compounding rate (your interest rate + 0.50%).
And you’re never charged interest on funds you haven’t tapped.

Opening the line earlier simply gives it more time to expand. Optional payments can increase available credit even further. Over the span of retirement, that growth can create a meaningful cushion — but only if the line has been established early enough to compound.

3. You Can Enhance Your Retirement Plan Right Away

Today’s retirement strategies rely on flexibility. A HECM line of credit can help manage risks like market downturns, healthcare expenses, and unexpected financial needs.

For some homeowners, the immediate benefit is eliminating a required monthly mortgage payment. For others, it serves as a standby reserve, tax-planning tool, or safeguard that prevents selling investments at the wrong time. Setting it up early gives you more ways to adapt as life changes.

**If you’re already 62 or older, the real question is no longer “Why now?”

It’s “What’s the cost of waiting?”**

When it comes to reverse mortgages, acting sooner can unlock advantages that time alone cannot.