Instead of receiving your reverse mortgage loan in the form of a lump sum payment, you can choose to take out a line of credit. The line of credit gives borrowers more flexibility, because they can choose how much they wish to borrow. This could mean smaller interest payments. Also, they have the flexibility to borrow as much as they need during the initial funding and then can use the line of credit as they wish.
The HECM line of credit works very similarly to a credit card except the amount that you can borrow will grow every month. For some homeowners, receiving a HECM line of credit is preferable than a fixed-rate reverse mortgage. Since it works like a credit card, you can choose not to borrow up to the line of credit limit. No interest is accrued on the money that was not borrowed. This particular reverse mortgage is excellent, because you do not have to worry about having your loan frozen during difficult credit times.
Talk to Reverse Mortgages of Southern California about how the HECM line of credit can help your family. We will take a look at your options and see if this is the right decision for you. If you have any questions we are ready to answer them. Give Reverse Mortgages of Southern California a call today!