'Line of Credit' Category Archives

Reverse Mortgage Line of Credit & Growth Rate Explained

February 17, 2025 118 comments

[arlo_toc] Reverse Mortgage Line of Credit: Why It's the Most Popular Option A reverse mortgage line of credit is one of several ways to access funds through an FHA-insured Home Equity Conversion Mortgage (HECM). Over time, it has become the most commonly selected option, largely because it allows equity to be used gradually rather than all at once. That preference...
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Reverse Mortgage vs. HELOC and Home Equity Loans: Easier Qualifications and More Flexibility

November 18, 2024 21 comments

As retirees seek ways to supplement their income or cover expenses, accessing the equity in their home can be a practical solution. Two popular options for doing so are the Home Equity Line of Credit (HELOC) and the Home Equity Conversion Mortgage (HECM), also known as a reverse mortgage. While both allow homeowners to unlock the value of their property,...
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Are reverse mortgages FDIC-insured, and do banking failures affect them?

March 20, 2023 no comments

This will be welcoming news if you are worried about reverse mortgages being non-FDIC insured. Fortunately for reverse mortgage borrowers, reverse mortgages are not FDIC-insured and, therefore, are not endangered by all the turmoil with banks at this time. The U.S. Department of Housing and Urban Development (HUD) guarantees the reverse mortgage. Specifically, HUD guarantees that the borrower can access...
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Skip the Reverse Mortgage Tenure and Go For Growth!

June 13, 2022 12 comments

If you're considering taking out a reverse mortgage, it's important to understand its unique features. Did you know that the federally-insured home equity conversion mortgage (HECM) program has a loan payment option that grows over time, increasing your borrowing capacity? The HECM program allows homeowners aged 62 and older to access the home equity they've built up in the form...
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HECM vs HELOC Comparison: Features & Decision Guide by ARLO™

September 9, 2021 12 comments

Reverse Mortgages Can Be a Solution to Major HELOC Resets. There will soon be significant changes for many Home Equity Line of Credit (HELOC) borrowers, which could result in considerable increases in payments. But a solution may also be available for those who qualify: a reverse mortgage line of credit. In the next few years, many homeowners who have taken...
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Reverse Mortgage Payment Options: Lump Sum vs Line of Credit

June 29, 2021 14 comments

If I do a reverse mortgage, can I pull all the money upfront as a lump sum, or do I have to have a line of credit? Is there a cost to pulling out all the money upfront? HUD changed the program a little while back so that borrowers are capped at what they can pull from home based...
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2014 Reverse Mortgage Payment Plans: Lump Sum vs Credit Line

October 9, 2014 2 comments

If I take an initial lump sum is it possible to obtain further equity in a lump sum after a number of years or would I have to pay the loan off and get a new loan? HUD allows you to take your loan as a fixed rate or an adjustable rate loan. The fixed rate loan is a closed-ended...
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ALL-NEW: Fixed-Rate Reverse Mortgage Line of Credit!

February 23, 2014 no comments

New Reverse Mortgage Product Offers Certainty of Fixed Rate, Flexibility of Payment Plans For the first time ever, a new reverse mortgage is available that offers borrowers all the certainty of a fixed-rate loan as well as the flexibility of multiple payment options all in one product. In years past, borrowers who opted for a fixed rate reverse...
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Avoid Payment Shock—Turn your HELOC into a HECM

February 14, 2014 no comments

Billions of dollars worth of home equity lines of credit (HELOCs) are about to amortize this year, and if you’re one of those borrowers who has one and you’re aged 62 or older, don’t panic—you might be able to use a reverse mortgage to pay off your loan. According to a recent report from Moody’s Investor Services, around $30...
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Reverse Mortgage vs HELOC: Side-by-Side Comparison

October 23, 2012 no comments

I would like to know how a "line of credit" would work compared to a HELOC. I owe a 2nd on my home for approx. 9,000.00. The first will be paid off in Dec. 2012. My home NOW is worth approximately $210,000.00. The 2nd is with Chase Home Equity. I would like to ONLY borrow enough at times on the...
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