Insight HECM buffer illustrative credit line

Initial HECM line of credit = principal limit factor (published table for the youngest borrower age) × home value; the card also sums cash, taxable, equity comp, traditional, Roth and HSA balances as the investable portfolio it compares against.

Field: Illustrative HECM credit line Unit: US dollars Basis: nominal dollars Computed by: Engine Status: Complete chain

Appears in: insights (hecm-buffer-candidate card rationale "would start near $X (P% of value)" and the portfolio total)

Calculation records

• Illustrative HECM credit line for a house-rich, portfolio-thin plan Model record, justified by derivation

  Purpose: The initial HECM line of credit a house-rich, portfolio-thin household could open, together with the investable sum it is compared against.

  Statement: For a primary residence worth at least $100,000, youngest borrower age at least 62, no modeled HECM, and home-to-investable ratio at least 0.75: investable = cash + taxable + equityComp + traditional + Roth + HSA balances; credit line = (principalLimitFactorPct / 100) × homeValue. Units: nominal dollars. Rounding: none.

  Formula: investable = C+Tx+Eq+Trad+Roth+HSA; line = (PLF/100) × H; fires when H/investable >= 0.75

  • H: Primary residence value (unit: usd) (domain: H >= 100000)
  • PLF: Principal-limit factor in percent, already resolved for the youngest borrower age (unit: percent) (domain: PLF > 0)
  • investable: Sum of cash, taxable, equity-comp, traditional, Roth and HSA balances (unit: usd) (domain: > 0)

  Timing: illustration at the projection start year

  Rounding: the card publishes whole-dollar strings (formatWholeUsd, Math.round) and the evidence asserts the published figure; no rounding before that

  Limits:

  • An illustration from the published age factor, not a lender quote or a claim the line is valuable on the deterministic path
  • The worksheet supplies the already-resolved principal-limit factor of 45% at age 65; the evidence passes that factor through rather than re-reading the table in the published parameters (the age-65 factor in the 2026 parameters is 37.2%)

  Provenance: derived by codex, implemented by grok.

  Independent review: cursor

  Gates (6 of 6 pass): fixture registers a test: pass; pins resolve: pass; families exist: pass; worksheet exists: pass; mutation receipt exists: pass; provenance independent: pass

  Worksheet: insight-hecm-buffer-illustrative-credit-line.md Mutation receipt: insight-hecm-buffer-illustrative-credit-line.mutation.md

  Evidence tests: hecmBufferCandidate.evidence.test.ts

  Implemented in: hecmBufferCandidate.ts

  Is the number of: insight-hecm-buffer-illustrative-credit-line

Engine source: engine/src/insights/detectors/hecmBufferCandidate.ts (hecmBufferCandidate.screen (lineSize, investable))