What is a Reverse Mortgage Growth Line of Credit

Where can you get a 3% better return than a CD or Money Market account?
A Bank CD is one of the safest places to store your money and still get an acceptable return.
What if I could show you how to increase your growth rate by 2%-4% more than any bank CD or Money Market account? As well as avoid paying taxes and do so with even less Risk?
How a Reverse Mortgage helped James
James did a Reverse Mortgage because he discovered the power of the Growth Line of Credit as a much better option to store his cash in retirement.
When James came to me, he owned a $500,000 home and had a $200,000 Mortgage. He also had $150,000 in a Bank CD earning 4.5% (taxed). Pretty good right? But not nearly as good as a Reverse Mortgage.
How was a Reverse Mortgage better?
• Advantage #1: James’ Reverse Mortgage paid off his old $200,000 mortgage and saved him $1300 a month in mortgage payments. We also gave him a Growth Line of credit of $50,000. Until he needs the money, his available funds will stay in the mortgage and grow by the interest rate attached to the mortgage which right now is around 7.5% (untaxed). Meaning that one year from now his available $50,000 will have grown to nearly $54,000. After five years if rates stay consistent he’d be at almost $72,000 in available funds.
But James didn’t stop there.
• Advantage #2: Realizing that his Reverse Mortgage was the better financial tool, he pulled the $150,000 out of his CD earning 4.5% and paid down his mortgage. This reduced his interest charges and added that money to his Growth Line of credit that’s growing at 7.5% Non-Taxed!!
• Advantage #3: He’s also continuing to pay his $1,300 payment (which is optional) because this will continue to pay his mortgage balance down. Every penny James pays adds to his line of credit and can be withdrawn anytime he needs it, (again untaxed).
The End Result is my favorite part.
If James had stayed with his old plan his $150,000 CD would have earned him $21,174 after 3 years and he would have paid around $4,300 in taxes. Leaving him a total of $166,874 and still paying his mandatory $1300 Mortgage payment.
But following the Strategy just outlined his Mortgage balance will be below $12,000. And his available line of credit will be over $291,000 and still growing!!!
What about the Kids?
These are the reason this is an absolute Win/Win for everyone:
• James has complete accessibility to all of his money
• The money is guaranteed and protected by HUD/FHA
• At any given time his money grows on average at 2%-4% higher than any Savings account, Money Market or CD.
• If he never uses this money it is transferred to the kids when he passes away in the form of equity in the home.
This is just one more example of how a Reverse Mortgage can really get you ahead financially and make life better for you and your family.
Call today and let’s see how the Reverse Mortgage Growth Line of Credit would improve your finances and protect your family’s inheritance.
Trevor Carlson
President - Equity Conversion Specialist
Heritage Reverse Mort.
435-359-9000
[e-mail]
Heritage NMLS #1497455 Trevor’s NMLS #: 267962
1060 South Main Street Bldg. A Suite 101B
St George Utah 84770
Equal Housing Lender