AFRAID YOU MIGHT RUN
OUT OF MONEY?
Build Your Own Long
Term Care Fund on the Cheap!
One little known advantage of the FHA Home Equity Conversion
(Reverse) Mortgage is how the credit line works: Once it is put into place, the
available funds on the credit line continue to increase. FHA guarantees the
percentage of increasing credit even if
the available credit becomes more than the house is worth. Unlike a bank credit
line – this credit line cannot be reduced or closed unless you move out of your
home for over a year.
If you are concerned about needing funds for long term care,
there is no need to make high-cost monthly
payments for an insurance policy when
you can set up a credit line at minimal cost. Because the growth builds
exponentially over time, the sooner you set it up the better. However, you are
not obligated to ever use the credit line, and if you don’t, you will not have
a balance on your account to repay. You receive a monthly statement showing the
available credit line and any balance. The funds you use are tax-free and
although you do not need to pay them back while you are living in your home,
you may make payments if you wish.
If you just want to be sure you are in the best position
possible if the time comes that you need home care, having the credit line
available provides peace of mind. You can draw on the credit line in any amount
at any time without having to repay it in monthly payments. When you no longer
live in the home, the home can be sold or refinanced, and any funds you used,
plus any payments, can be repaid from the proceeds.
This FHA- insured credit line is a very safe back-up plan
that may take the burden off of your children - and covers you just in case you
outlive your money.
Call Julia at 502-426-7840 direct to learn more about how you can access your own line of credit.
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