Reverse mortgage is the line of credit that grows

One of the most overlooked benefits of the Home Equity Conversion Mortgage (HECM) is the growing line of credit.

This unique feature allows for your unused line of credit balance to increase over time.

The growth rate on the unused portion in the line of credit is determined by the current interest rate on the loan plus 1.25 percent.

For example, if the current rate is 4 percent, the growth rate will be 5.25 percent.

If the interest rate on the loan increases, so will the growth rate on the line of credit, so more funds become available to the homeowner.

A reverse mortgage is a loan that enables homeowners 62 or older to borrow against the equity in their home, without having to give up the title, or take on a new monthly mortgage payment. The money received from the reverse mortgage can be used for any purpose.

The loan amount depends on the borrower’s age, current interest rates and the value of the home.

The homeowner must remain current on property taxes and insurance.

A reverse mortgage does not have to be repaid until the borrower sells or moves out of the home permanently, and the repayment amount cannot exceed the value of the home.

After the loan is repaid, any remaining equity is distributed to the borrower or the borrower’s estate.

For more information, call David Chee, NMLS ID#263222 at (800) 9673575 at HighTechLending, Inc., Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act. NMLS #7147. 4695 Chabot Dr. Suite 200 Pleasanton, CA 94588. NMLS Consumer Access: www.nmls consumeraccess.org.