Reverse mortgage line of credit: More benefits, more flexibility, more control
A home equity line of credit can be a valuable piece of a comprehensive retirement plan — but not all home equity line of credit loans are the same.
If you’re 62 or older, you may be eligible for a reverse mortgage line of credit, which can give you greater control of your retirement finances than a traditional home equity line of credit.
Advantages of a reverse mortgage line of credit
Flexible repayment feature
On a monthly basis, you can opt to pay interest only, principal and interest, or make no loan payment at all — it’s your choice. Just keep up with your other loan obligations, including paying for property taxes, insurance and maintenance.
No pre-defined maturity date
The balance does not need to be repaid until you sell or no longer live in your home.
Credit line growth feature
Your unused line of credit grows over time independent of your home’s value, so you have access to significantly more funds later on.#
Improves cash flow
You can consolidate any existing debt into one line of credit that gives you the most financial flexibility possible.
Is a reverse mortgage line of credit right for you?
Exclusively for homeowners 62
Specifically designed to allow you to borrow against the equity in your home as a flexible line of credit.
Continue to own your home
With a reverse mortgage line of credit, you retain ownership of your property, your name remains on the title and any existing mortgages are replaced with a first position line of credit. As with any mortgage, you must meet your loan obligations, keeping current with property taxes, insurance, and maintenance.
Your reverse mortgage line of credit also provides non-recourse protection, meaning you won’t owe more than the home is worth when the loan is repaid.