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Line of Credit

Line of Credit

 

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 60* 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 60*

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.

Non-recourse loan

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.

 


Reverse mortgages can be used as an alternative to a home equity line of credit.

 

 

Credit Line Calculator

 

#If part of your loan is held in a line of credit upon which you may draw, then the unused portion of the line of credit will grow in size each month. The growth rate is equal to the sum of the interest rate plus the annual mortgage insurance premium rate being charged on your loan. For the Equity Elite (EE) loan option with a growth rate on a line of credit, there is a specific growth rate, such as 1.5% per annum (compounded monthly) applied to certain unused amounts, and a growth rate period, such as 7 years after the loan closes, as stated in the loan documents provided at closing. Also, the line of credit cannot exceed: (1) 75% percent of the original Principal Limit, plus (2) the growth of the available Principal Limit due to the growth rate.