Reverse Mortgage Creditline Option!
The Credit Line is where the Washington reverse mortgage lender sets up your reverse mortgage loan and determines how much money is available to you but instead of giving it all to you all at once it is available to you when you want it and in any increment you want.
Let's say you have $200,000 available in your Credit Line but you only want $50,000 to buy a new car and fix the house, the remaining $150,000 is left as equity still in your house and since you have not borrowed it yet you would not have any interest earning against that $150,000 yet and in fact the $150,000 you have left in the Credit Line is growing, and it is growing at the same effective rate as the money you have borrowed is being charged against you.
For example if the rate of interest you are being charged is 5% then the Credit Line growth rate is also 5% so if you leave the $150,000 there for one year you now have $7,500 more available and it does compound.
This is not interest you are earning since the reverse mortgage lender does not have any of your money, it is still equity in your home, the growth is due to the design of the Washington reverse mortgage and the fact that if you are older when you take out the reverse mortgage loan you are entitled to more money so this is a way to compensate for that.
More Washington Reverse Mortgage Information:
Washington Reverse Mortgage Examples | Reverse Mortgage Creditline Option | Single Senior Women and the Reverse Mortgage | Lump Sum, Monthly or Tenure Payments | Combination Payout to You