CREDIT LINE

I'm thinking about getting a credit line. Therefore I will only have to take out what I need of the loan.

Sounds like a good idea, wonder if you draw interest on the money left in the bank that you do not draw out.

I also wonder if it you can pay money back into the credit line if you don't need the money and then draw more out like a regular credit line in a bank.

I would think all credit lines would be alike. the good thing would be that if you did not need the money you wouldn't draw it out.

If you choose the line of credit, the amount in your credit line is not debt and therefore will not incur interest, in fact, it will grow at ½ percent (0.5%) more than the interest you are charged (on the amount you owe). The growth on your credit-line-fund is an increase in what you were initially eligible to borrow. It is not interest earned and therefore would not be reported as income. You may access these funds, as often as you wish, until they are exhausted. This credit-line-fund option is typically chosen, if you do not wish to borrow all that you are eligible for, at closing;

If you choose the line of credit, the amount in your credit line is not debt and therefore will not incur interest, in fact, it will grow at ½ percent (0.5%) more than the interest you are charged (on the amount you owe). The growth on your credit-line-fund is an increase in what you were initially eligible to borrow. It is not interest earned and therefore would not be reported as income. You may access these funds, as often as you wish, until they are exhausted. This credit-line-fund option is typically chosen, if you do not wish to borrow all that you are eligible for, at closing;

Thanks we got the same information from both of you, must have looked at the same information. Anyway glad to know how much interest. I'm sure going to check into the reverse loan for my wife and myself.