Feel free to click here to watch a video on the HECM reverse mortgage line of credit growth rate.

The HECM line of credit growth rate is a topic that's never talked about or one of the most misunderstood things about the line of credit option.
In a nutshell, the unused portion of the line of credit grows each month without the borrower having to do anything.  No refinancing, no appraisal....nothing.  So you have more funds to use if you need it now, or later and the funds because it being home equity is tax free to access it.

Too good to be true? What's better a reverse mortgage equity line of credit vs. a regular home equity line of credit?  It's not even close. This is one of the best kept secrets that can help thousands of senior citizen homeowners.  The key is to originate the loan as early as possible in your retirement, say 62 years of age, to allow time for the magic of compounding interest to take place to give the line time to grow.  To get the most out of the HECM Reverse Mortgage line of credit growth rate, it is ideal to have a home that's free and clear of mortgages and liens prior to originating the loan.  This way there is no mortgage balance, and the line of available credit can grow faster.  
The interest rate assigned to your HECM line of credit is at your choosing prior to the funding of your loan.  To calculate your growth rate on a monthly basis, you take your interest rate for that month and add .50% to that (never changes) multiply that figure by the available line of credit and divide by 12.  For example if you have an interest rate for the month of January of 5.5% add .50 to that to get 6.0.  If your available line of credit amount is $100,000, multiply 6% x 100,000, = $6,000 and divide by 12 = $500.  So now your available line of credit to use has increased for the next month to $100,500.  Each month your available line of credit grows in this compounding manner.  Don't worry the lender does the calculation for you. 
You can start out with a $100,000 line of credit available to use at your disposal, and in 20 years, without taking any advances, it can blossom to $200,000 and in a rising interest rate environment, it can blossom to $300,000 or more-all in tax free money to use.
The initial amount of the credit line granted by the lender is explained in the
how to qualify for a HECM reverse mortgage section.

If your home depreciates in value, the
HECM Reverse Mortgage line of credit
stays open.  It can not be closed per HUD guidelines, and even if the value of your home is $300,000, your line of credit can surpass the value the home....with no ceiling!  It can keep growing and growing with compounding interest.

This option is not for everyone.  If a senior citizen needs immediate funds to help supplement their income, or if they are looking to buy a home, this option may not be a good fit, but it can create wealth for some who have the  "set it and forget it" discipline and ability to live off other retirement vehicles.
Some people may be of the opinion to not take out the HECM line of credit and let their home appreciate in value coupled with the fact that the older you the more funds you get with the reverse mortgage and they will come out ahead of the compounding interest figure.
That may be true in when interest rates are high and home equity is on the rise, but as of 2018 rates are low and on the rise, which bodes well for the line of credit growth rate, and property values which now aren't far off of all time highs, were to freefall in value again as in 2007-2008, people would be leaving in some cases hundreds of thousands of dollars on the table in the form of lost equity appreciation, that may never come back in their lifetime.
Taking out a HECM line of credit at an early age may be a safer bet.
The HECM line of credit growth rate is not tied to home appreciation.  The value on your home could go down or up on a monthly basis, but your line of credit keeps growing, on a monthly basis. 
Buying a home with a reverse mortgage is better fit for the
HECM Reverse Mortgage purchase loan
, and getting immediate funds to supplement monthly income can be used with the HECM Reverse Mortgage line of credit, but instead of letting the available credit limit grow, you access it right away, which is a different and acceptable kind of strategy than what I'm explaining here .
So again when comparing a
HECM reverse mortgage equity line of credit vs. a regular home equity line of credit
the HECM gives you more options, more money over time and safety since the lender can not close the line in the event of falling home values.

Click here to learn more about the Reverse Mortgage HECM line of credit growth rate by watching this video.
If you have any other questions or concerns feel free to call Kevin Walton at 800-506-0632 ext. 0 or
click here to describe your loan scenario.

Warmest regards,
Kevin Walton
Residential Mortgage Loan Officer
C2 Financial Corporation
NMLS 2454923









HECM Reverse Mortgage Refinance

Thank you for your interest and taking the time in looking into the HECM reverse mortgage refinance loan. Please let us know your scenario by briefly filling out the below fields so that we can assist you. We do not sell your information to any third parties and we too value privacy! Thanks, Kevin Walton Best Capital Funding Cell: 800-506-0632 ext. 0

HECM Reverse Mortgage Refinance