Imagine reversing the cashflow between you & your lender. Instead of paying your monthly mortgage - they pay you.
A HECM Reverse Line of Credit grows over time!
With this type of reverse mortgage there are several different ways to receive your money. Get lower closing costs by limiting your initial money disbursement for the first year, gain access to your credit line when you need it and more.
The line of credit reverse mortgage is easily the most popular option for borrowers: about 66% of the time, according to AARP. It gives you a lot of flexibility with your finances. With the fixed rate option, you take all of your funds in a lump sum at the very beginning. However if you want to be able to access your funds as you go, the line of credit will likely work better for you.
You don’t accrue interest on any of the funds that you’re not using. So, you don’t pay interest on the funds available to you as long as they remain un-borrowed. The HECM Line of Credit can never be frozen or closed while you still have a remaining balance left on it – not even during tough credit times. You’ve already paid your federal mortgage insurance to ensure that your line of credit is always available.
You read that right. The unused portion of the credit line grows at the same rate at which the loan accrues interest, +1.250% monthly. This is a great benefit to many seniors looking for a stable future. For a better understanding of this complex element of the line of credit reverse mortgage, contact one of our reverse mortgage advisors.
Purchase a home using a reverse mortgage, without any monthly mortgage payments*. Find a home that meets your current needs or move closer to family.
If you qualify, this Federal Housing Administration (FHA) insured home loan lets you use the equity from the sale of your previous home to buy your next one - all in one transaction.
How much money you can receive from a HECM for Purchase loan depends on the age of the youngest titleholder, the current interest rates, the lesser of the appraised value, and the purchase price or the FHA lending limit.
Why You May Love a Reverse Mortgage Purchase