Reverse Mortgage Question from Fresno, CA

Mortgage and Lending with Security 1 Lending NMLS# 1064132

Reverse Mortgage Question from Fresno, CA

A question I was asked recently: "Jenna, how does the line of credit grow?"

Let's use an example that perhaps you own your home and have a small mortgage debt that you are looking to retire. You have been considering  a Reverse Mortgage for this purpose but you really aren't looking to access all the money available to you with a Reverse Mortgage.

Most people are frightened by an adjustable rate mortgage (and rightfully so) but in this case it just might not be so bad. Let me explain... After the final documents have been signed on a Reverse Mortgage any other mortgage on the home is then paid off which then will free you up from making monthly principle and interest payments. (The borrower is still responsible for taxes and insurance as they still own their home)

If you are simply looking to retire the current mortgage debt then the remaining amount of the available funds from the Reverse Mortgage can then be placed into a line of credit. The great thing about the line of credit is that it has a growth factor that is equal to the amount of interest being charged on the used balance plus the ongoing mortgage insurance premium(1.25% of outstanding loan balance)

What this means to you: By leaving the remaining funds in the line of credit then over time you will have a much larger available balance which may be beneficial for purchasing something such as in home health care as just one example.

Thanks to the line of credit growth factor the use of a Reverse Mortgage is now being looked at in a new light and is able to be utilized as a financial planning tool by professionals instead of just a last resort.


Jenna Yancey

Reverse Mortgage Specialist

Fresno, CA


Reverse Mortgage Specialist, Jenna Yancey

Comments (2)

Li Read
Sea to Sky Premier Properties (Salt Spring) - Salt Spring Island, BC
Caring expertise...knowledge for you!

Appreciated your explanation.   This is not something that is very common in my region.

Sep 16, 2013 03:43 AM
Jenna Yancey
Security 1 Lending - Fresno, CA
Reverse Mortgage Specialist

Hi Li,

Thank you so much for taking the time and giving me some feedback.

Make it a great day!


Sep 16, 2013 03:46 AM