Question:

How do reverse mortgage credit lines work?

Answer:

Reverse mortgage credit lines offer better accession options, credit line growth and great flexibility. They may also get you better rates.

Since interest is accrued not only on your reverse mortgage loan, but on your remaining balance, as well. That is, if you have $100,000 left on a reverse mortgage credit line, in one year you will have $106,500 to draw if your yearly rate is 6.5.

Not every lender will offer reverse mortgage credit lines, so if you like this payment option consider doing some extra research. Depending on how you want to receive your payments, you may consider different payment options and terms with different lenders.

Reverse mortgage credit lines are just one possible payment option and you should know there are also combined payment plans, single cash out plans, monthly premiums for limited time or lifetime reverse mortgage payments. Depending on how much you want to use your equity and your eligibility, you will benefit with some better than with others.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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