A HECM line of credit for Boise homeowners increases on the unused portion each year at the loan’s effective rate. That means your available credit can grow even if home values stay flat. It’s a unique feature that turns housing wealth into a flexible, expanding safety net.

The Mechanics in Plain English

• The reverse mortgage creates a credit line tied to your home’s equity.

• Any unused portion of that line increases each year.

• Interest only accrues on the funds you actually draw, not the unused credit.

This growth feature gives retirees a way to build liquidity for future unknowns without adding a monthly payment.

A Simple Growth Example

Assume an initial $100,000 line with an effective rate of 6%. If you don’t draw in year one, your available credit may increase by roughly $6,000 (rate-dependent). Over several years, the credit line can become significantly larger—providing more flexibility for maintenance, medical needs, or care support.

Note: Rates, margins, and MIP affect specifics. We model real numbers for your profile before you decide.

Why This Matters in Boise

• Aging-in-place upgrades: Ramps, bathrooms, roofs—projects you can schedule when needed.

• Medical contingencies: A ready reserve for copays, in-home care, or equipment.

• Market volatility buffer: Draw LOC in down markets to avoid selling investments at lows (coordinate with your advisor).

• Property tax/insurance planning: Use LOC to handle irregular bills without disturbing monthly cash flow.

LOC vs. Lump Sum (Trade-Offs)

• Lump sum: Predictable cash now, but no growth on unused funds; interest begins on the amount disbursed.

• LOC: No obligation to draw; grows on the unused portion. Many Boise homeowners prefer a hybrid—take a small initial draw and leave the rest as a growing LOC.

Responsible Use (Keep Costs in Check)

• Draw only what you need; the balance grows with use.

• Review statements; monitor available vs. used credit.

• Keep taxes, insurance, and maintenance current to avoid issues.

• Communicate with family so everyone understands the repayment triggers (sale, move, or passing).

Common Misconceptions—Cleared Up

• “I’ll lose my home.” You stay on title; the loan is a lien, not a transfer of ownership.

• “My lender can cut my line.” HECM LOCs have program protections; terms differ from bank HELOCs that can be reduced or frozen.

• “It’s taxable income.” Loan advances are generally not taxable income (confirm with your tax professional).

Who Typically Benefits

• Homeowners 62+ with meaningful equity who value payment flexibility.

• Those wanting a standby reserve for uncertain costs.

• Boise residents planning to stay in the home and maintain it long term.