Stabilize Spendable Funds When Income Fluctuates

The senior with fluctuating income can use a HECM credit line profitably to stabilize her spendable funds. She does this by drawing on the line when income drops, and repaying the line when income is high. The benefit, as contrasted to using a bank account in the same way, is that the investment return earned on repayments is the mortgage rate plus the mortgage insurance premium, which is much higher than any deposit rate they can earn at a bank.

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

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