Reverse Mortgages; the only true guaranteed equity line of credit

Mortgage and Lending with Christensen Financial Mortgage 385907

back in the day when we had the great RE adjustment many of my Realtor friends had put traditional equity lines of credit in place on their homes. they did so in case their income was reduced, or became unstable. Then they could use the equity line to ride out the storm until the market recovered. So what happened?

When RE values began heading south, and they need the equity line the most

the BANK closed their equity line. essentially with most equity lines the lender can do this at their discretion, without notice.

Now pay attention here, because this is important.

Meet the HECM equity line of credit, which is available with a reverse mortgage.


First; it is guaranteed, cannot be closed by the lender, regardless of your current equity position. once it's in place, it's available, period.

Second; it has a growth provision. Try finding that with any other equity product. and let me know how that search works out for you. the HECM equity line of credit is going to grow/increase annually, regardless of whether you currently have equity in your property. once it's in place, it grows!


No that is not a misprint!


so, a couple of simple points;


when should a senior investigate the option of acquiring a reverse mortgage? and the answer is as soon as they are eligible. that doesn't mean it should be acquired, and it doesn't mean that it shouldn't. it does mean that it is an incredible option for both investment, and income stabilization.

also, even if it is not needed at this time, just sit back and watch it grow, for whenever it is needed. after all it's guaranteed, and can't be closed, as long as you have the reverse mortgage.


Lastly, as always, before proceeding with a Reverse Mortgage find yourself a knowledgable, well trained Reverse Mortgage Planner, whom you can TRUST! 

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