• Question
  • We would like to establish a line of credit----if we were to pay this back how much would...

    Asked by a 80 year old man from Sidney, MT on 2/2/2013

    We would like to establish a line of credit----if we were to py this back how much would it be---what are up front costs--

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  • Categories: Housing, Tapping home equity

Answers

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  • It may depend on the type of line of credit you're seeking. A general line of credit or home equity line of credit (or HELOC, which requires your home to serve as collateral) may, generally speaking, have lower costs than a reverse mortgage line of credit. However, a reverse mortgage does not require you to have good credit.

    This article might be a good start to learning about how a reverse mortgage line of credit can work along with their associated fees and interest rates, http://www.newretirement.com/reverse-mortgage/reverse-mortgage-interest-rates.aspx.

    To get an estimate for how much you could receive from a reverse mortgage on your home, this site offers a helpful calculator: https://www.newretirement.com/Services/Reverse_Mortgage_Calculator.aspx.

    The best solution may be simply to shop around and clearly state your purpose for the line of credit.

    This answer is provided as general information only and provided by Master’s students pursuing a degree in Personal Financial Planning at Texas Tech University. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or Certified Financial PlannerTM as to your unique financial situation.

  • Login to rate this answer:   Answered on 5/5/2013
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.