The short answer is – absolutely. And as a matter a fact, HECM reverse mortgages are great options to eliminate HELOC payments.
A HELOC is the acronym for Home Equity Line of Credit, and thousands in Connecticut have taken advantage of it. When the housing boom was in full swing a number of years ago, the values of personal homes gave their owners a strong resource to draw upon in the form of a loan. Unfortunately many of these loans amortized, leaving the borrowers with higher than predicted payments.
Seniors 62 or older with a HELOC loan may be able to utilize a HECM reverse mortgage to relieve the financial burden. The HECM Reverse Mortgage, provides the borrower with non-taxable income that will not affect social security or Medicare, and can be used for whatever the borrower sees fit. The funds from the loan can also be received in various options such a monthly payments, line of credit, or a lump sum. Seeking the advice of a reputable reverse mortgage lender can help you make these decisions. During the application process, the HELOC will be discussed and a options of paying it off will be laid out.
If you do not presently have a HELOC but are considering one and are age 62 or older, put HECM reverse mortgage on the table for a consideration as well. There will be advantages to both options giving you a sense of freedom to have choices.
Sara Cornwall is a local Reverse Mortgage Advisor serving the entire state of Connecticut. Contact Sara and learn if reverse mortgage is right for you.