California Reverse Mortgage News

Standby HECM Reverse Mortgage Line of Credit Is Becoming A Key Retirement Tool

September 28th, 2015 11:12 AM by Kevin Walton


The HECM Reverse Mortgage Line of Credit is fast becoming a key retirement tool for baby boomers.
Word is getting out that Reverse Mortgage Line of Credit growth rate allows the amount of unused available credit to grow over time, which means more accessible tax free money when the senior needs it.
The idea is to take out the Reverse Mortgage Line of Credit as a reserve, where you don't use it right away.  It's a set it and forget it mentality.  As it sits there idle, the line of credit of unused funds grows over time.  It can grow to double or triple its size and when you withdraw the funds it's tax free.
A bank home equity line of credit does not have this capability.
The bank can also close your line of credit in a down real estate market without your consent.  Not so, with the HECM Reverse Mortgage Line of Credit, it can't be closed for home value reasons.
Can the Reverse Mortgage Line of Credit grow to the point where it exceeds the value of the home?  Yes it can. So what happens if the property needs to be sold and the property value is under water?  The M.I.P., mortgage insurance premium that comes with the loan pays off the difference.  It's like gap insurance and heirs can rest easy that aren't responsible for the balance.
You owe it to yourself to check out the HECM Reverse Mortgage Line of Credit and it's growth rate feature and see why it's fast becoming a financial planning tool for our Baby Boomer generation.
Click here to watch a video on the HECM Reverse Mortgage Line of Credit growth rate.
Best,
Kevin Walton
Best Capital Funding
Certified Mortgage Advisor