Glen Smart

Senior Loan Officer - Manager of Reverse Mortgage Division
  • NMLS 208695
    LMB 100052967
  • Office: 520.495.7237
  • Cell: 520.245.8830
  • Fax: 520.777.9647
  • send me an email
Branch NMLS 161641
6893 N. Oracle Rd. Suite 121
Tucson, AZ 85704

Licensed to originate mortgage loans in the following states: AZ, CA, CO, NV

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Rising Interest Rates


Rising interest rates could be a boon to those who already have a reverse mortgage in place!

Rising interest rates could be a boon to those who already have a reverse mortgage!

Reverse mortgages allow seniors who are aged 62 and older to tap the equity in the home to pay off debts and increase their household cash flow.  Seniors can receive a monthly income, take a lump sum, or access monies later on a line of credit.  Many blend the options to customize the loan to fit specific needs. 

A little known feature of the line of credit is that the unused portion actually grows over time.  In fact, a senior who takes a reverse mortgage early in their retirement years and leaves the funds untouched in the line of credit will see their available amount increase, regardless of any change in the property value.  This growth factor is tied to movements in the London Interbank Offered Rate (LIBOR) so as interest rates increase, the unused portion of the line will grow even faster.  In this scenario, it pays to take the reverse mortgage line of credit earlier in retirement to take advantage of the growth rather than waiting until a future date and missing out on years of growth accumulation.

Many retirement planners and CPA's have introduced reverse mortgages as another tool that seniors should consider when setting a retirement income strategy.

No one mortgage or financial tool is designed to fit everyone's needs.  It is imperative to one's financial health to explore the features and benefits of all available options, reverse mortgages included.

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