HECM Benefits: Inflation Hedge

A reverse mortgage credit line growth can be used as a hedge against inflation. The credit line grows at a rate .5% higher than the current interest charged on the line.

Since the interest on the credit line is a function of T-bill rates which have an implied inflation premium, When the rate of inflation incrses the credit line should grow at an even faster rate.

Simply put when inflation is corroding your spending power the credit line will give you more available cash to supplement your income.

That's all for now.
Eben http://www.mireverse.com/