What is the interest rate on your current Line of Credit?
If it is unsecured it could be as high 12% and a secured line of credit may have an interest rate up to 6%.
Many people have recognized that the interest rate on their Reverse Mortgage is more competitive than what they are receiving on their unsecured line of credit. The benefits of it are:
- No income qualification
- No credit score requirements
- No danger of it being revoked when income is not adequate to qualify
- No payments required
If you wish, you can treat it exactly like a line of credit and make the monthly interest payments or a portion thereof. This option preserves the principal amount allowing the equity in your home to increase without interest accruing against it.
Have a look at this Lending Comparison Table that the bank created.
