Many people with a HELOC were caught off guard in 2008-9 during the Real Estate correction. Banks
were calling the HELOCs due (there is a demand feature in the note), or they were freezing their HELOCs
so borrowers could not borrow against them, or even cutting their available balance in half.
HELOC vs Reverse Mortgage
Why is a Reverse Mortgage Line of Credit (RMLOC) better than a HELOC? Because NONE of these things
can ever happen with a RMLOC! Also, with a RMLOC, a portion of a home owners equity can earn 3-5% a
year compound interest, guaranteed. Plus, that same amount is protected from another real estate
correction or down turn.
Reverse Mortgage Benefits
Finally, a with a HELOC a mandatory monthly payment is required. With a RMLOC, responsibility for
repayment transfers from the borrower to the home. That is HUGE! When I meet with Senior
homeowners and they understand the power of a reverse mortgage line of credit they are blown away.
Are you ready to protect some of your equity from market risk and start getting a return on your
investment? Reach out to me with any questions.