Reverse Mortgage line of credit for senior homeowners

What is a Reverse Mortgage Line of Credit?

February 13, 2023
In the right situation, a RLOC could help seniors preserve their assets.   

As Americans continue to be impacted by inflation and economic challenges, many seniors are looking for ways to cover their living expenses. Some are relying on their retirement portfolio for income — yet, withdrawing money from retirement funds during stock market downturns can be devastating to a senior’s financial future.

One solution? A reverse mortgage line of credit (RLOC), which retirees can use during market corrections.

The money withdrawn from a reverse mortgage line of credit is nontaxable, so a retiree will need to withdraw less each month than they would from a taxable retirement account. Turning off withdrawals and using the reverse mortgage line of credit during market corrections will preserve the share balance so that, when the market recovers, the cash balance will also recover. Once the balance has returned to pre-correction levels, a retiree can choose to repay the reverse mortgage line of credit or keep the money growing in the retirement account.

Overall, a reverse mortgage with a line of credit is one option for retirees that can help them manage their assets most effectively.

At Waterstone Mortgage, we help seniors explore whether a reverse mortgage is ideal for their current circumstances and long-term goals. Because reverse mortgages are unique, we take the time to answer questions, address concerns, and help our potential clients strategize for the future.

Interested in learning more? Get in touch with a trusted Reverse Mortgage Specialist at Waterstone Mortgage. It’s our goal to help senior citizens create a more financially stable and secure retirement.

Property and borrower eligibility requirements apply. Loan becomes due and payable when the last remaining borrower (or eligible spouse) sells the property, permanently leaves the home or passes away. Taxes, insurance, and repairs are the responsibility of the borrower and must be maintained to avoid early repayment of the entire loan amount. Consult a tax advisor for questions about tax and government benefit implications.