Search Description

Stabilize Spending in the Face of Fluctuating Income
Stabilize Spending in the Face of Fluctuating Income

Seniors with fluctuating income can use a HECM credit line profitably to stabilize their spendable funds. They 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.