Reserve Borrowing Power For Specific Need, Use Balance to Supplement Income

Some seniors want to supplement their income with a monthly, but a major priority is to reserve a specific amount for an expected (or possibly an unexpected) occasion or emergency. They would specify the amount of the credit line they wish to reserve for future use, and take the balance of their borrowing power as either a tenure or a term payment.

An unused credit line grows monthly at a rate equal to the mortgage rate plus the mortgage insurance charge. This means that the senior who knows approximately when she will need to access the line can take account of expected growth in deciding on the size of the initial line.

In or near retirement? The Professor’s Retirement Funds Integrator (RFI) might enhance your life during retirement.

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