Thinking HELOC for that remodel? If you’re 62+, meet the RELOC.

The unused portion of a HECM line of credit increases each month at the same rate being charged on the loan (note rate plus the annual mortgage insurance rate), applied to whatever you haven’t drawn. It’s a program rule, not a market return — the growth means more borrowing capacity is available to you later, and it happens whether home values rise or fall.

No — and this distinction matters. Line-of-credit growth increases the amount you can borrow; it isn’t interest income and it isn’t cash until you draw it. What it gives you is expanding access to your housing wealth over time. Kelly will show you a year-by-year growth illustration at your check-up.

Because the growth compounds on the unused line. A line opened at 62 and left alone can be substantially larger by 75 or 80 — standing ready for long-term care, a market downturn, or the remodel you finally get around to. Many financial planners think of an early HECM line of credit as retirement insurance you don’t pay a monthly premium on (closing costs and accruing MIP still apply).

A HECM generally has higher upfront costs than a HELOC — including FHA mortgage insurance — in exchange for the growth feature, the freeze protection, and no required monthly payment. Whether that trade is worth it depends on how long you’ll stay and how you plan to use the line. That comparison, side by side with real numbers, is exactly what the home equity check-up is for.