We’re Protecting Our Nest Egg
Cliff and Tamara own a lovely home in Bloomfield Hills, Michigan, and were able to save well for their retirement. But a market downturn has them concerned about protecting their nest egg, especially over the long run.
Their Financial Advisor recommends they apply for a reverse mortgage line of credit and use it to supplement their income during market dips.
Our credit line
grows every year.
They qualify for a $167,000 credit line and draw $45,000 the first year to supplement their income rather than selling investments in a down market. Cliff elects to pay interest on the money they borrow. When the market improves or stabilizes, they have the option of paying down their loan balance as well.
Since their reverse mortgage comes with a line of credit growth feature, their line grows every year, boosting both its balance and their borrowing power in the future. Growth rates have averaged over 4.5% annually in the last few years, which is significantly higher than deposit rates.
Is a Reverse Mortgage Right for You?
* Stories are hypothetical and for illustrative purposes only. Each client’s situation is different, so please consult your reverse mortgage expert.