REVERSE MORTGAGES AND EQUITY LOANS, SIMILAR BUT DIFFERENT
Although a Reverse Mortgage is a lot like an Equity Loan, there are some significant differences.
(a) With a Reverse Mortgage, your credit number is not a determining factor.
(b) Unlike an equity loan, you make no monthly mortgage payments.
(c) With an Equity loan, if you are looking for more money, you would have to refinance.
GROWTH RATE ON THE REVERSE MORTGAGE LINE OF CREDIT!
With a reverse mortgage, the unused portion of the HECM line of credit grows over time at the same rate of interest charged on your loan plus 1/2% thereby giving you access to more funds without the need to refinance. Having future funds available to you for whatever you might need is a comforting feeling. If the line of credit is utilized, you only pay back what you used.
The Reverse Mortgage Advantage - Tax Free Growth
Your reverse mortgage proceeds come tax free and with a growth rate on your money, the program has become increasingly attractive to financial planners who work with senior borrowers. Share this information with them and have them give us a call with any questions.