Wade Pfau (Ph.D., CFA) is a Professor of Retirement Income, Retirement Income Certified Professional (RICP®) Program Director, and Co-director of the Retirement Income Center at The American College of Financial Services.
In this somewhat technical and very detailed analysis, Dr. Pfau explains how the HECM Line of Credit growth feature works. He stresses that having unused line of credit grow is a valuable consideration for opening a reverse mortgage sooner rather than later. And he compares the net result from a senior opening a HECM Line of Credit at age 62 versus deferring that decision until there's a need for funds.
