The hecm line of credit is the most prudent option for hecm payment disbursements. Since you are only charged interest on the amount of money you actually borrow the hecm lin of credit offers a safe haven for your funds. They even accumulate a fair amount of interest for you. The fear of many hecm loan borowers is that they will get a lump sum payment, pay off high intererest items like credit cards or other loans, spend a little, then have nothing left of the money. We do advise that you pay off high interest items. The beauty of the hecm line of credit is that it allows you to draw money as you need, when you need it. There is not the chance of squandering it that you have with a lump sum disburement. The hecm line of credit is available in all hecm loan transactions. Prior to loan closing you will be able to choose your payment method. You can choose a lump sum payment, monthly payments for life, or fer a set period of time, or you can choose the hecm line of credit. Some people even opt for all three, paying off credit cards with a portion of the funds, alloting a small amount to be paid to them monthly, and keeping the bulk of the money safe in a hecm line of credit.
For more information on HECM loans, to get a free hecm reverse quote, or to search for HECM lenders, please visit our partner site Senior Reverse Mortgage Online, or call 1-866-216-4636
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