Reverse Mortgage Line of Credit: A Smart Retirement Income Strategy for Homeowners 62+
When people hear the term reverse mortgage, they often think of a last-resort option or a lump-sum payout. In reality, one of the most powerful and flexible features of today’s modern reverse mortgage is the Reverse Mortgage Line of Credit (LOC).
For homeowners age 62 and older, this option can serve as a strategic retirement income tool, offering flexibility, control, and long term financial security.
What Is a Reverse Mortgage Line of Credit?
A reverse mortgage line of credit is available through the FHA-insured Home Equity Conversion Mortgage (HECM) program.
Instead of taking all available equity at once, homeowners establish a line of credit secured by their home that they can access only when needed.
Interest Is Only Charged on Funds You Use
Interest accrues only on the amount withdrawn. Unused funds do not accrue interest, allowing homeowners to preserve equity while maintaining liquidity.
The Line of Credit Grows Over Time
The unused portion of a reverse mortgage line of credit grows over time, guaranteed by the FHA program and not tied to the stock market or home appreciation.
You Can Repay the Loan and Restore the Credit Line
Borrowers can repay any amount at any time, restoring available credit dollar-for-dollar with no prepayment penalties.
No Monthly Mortgage Payments Required
There are no required monthly mortgage payments. Borrowers must continue paying property taxes, homeowners insurance, and maintain the home.
Who Is This Right For?
This strategy works best for homeowners planning to stay in their home long-term who value flexibility, liquidity, and control in retirement.
Learn More
To learn more about how a reverse mortgage line of credit may fit into your retirement plan, contact Jeff Marsack at 586-943-8173.
