How is a reverse mortgage different from a traditional home equity loan or line of credit?

A reverse mortgage offers certain advantages:

  • With a traditional home equity loan or home equity line of credit, you must make monthly principal and interest payments on the balance while you live in the home — whereas a reverse mortgage has a flexible repayment feature. You can pay as much or as little as you like each month toward principal and interest, or make no monthly loan payment at all. Your reverse mortgage balance, including accrued interest and fees, does not have to be repaid until you pass away or move out, as long as you meet your loan obligations (which includes keeping current with property-related taxes, insurance and upkeep).
  •  If part of your loan is held in a line of credit upon which you may draw, then the unused portion of the line of credit will grow in size each month — giving you access to more available funds as time goes on. The growth rate is equal to the sum of the interest rate plus the annual mortgage insurance premium rate being charged on your loan.
  •  And the lender cannot “freeze” or reduce the line of credit, as long as you fulfill your loan obligations — so it will be there if and when you need it.

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Larry Was Outstanding Larry was outstanding. This is our fourth reverse mortgage and the best yet. Larry kept in contact and helped throughout the whole process. I could not be more pleased. .

Bob & Carol H — May 17, 2023

Very Attentive to our Needs I want to thank Larry for all his help during our reverse mortgage process. We were a little apprehensive, but Larry was there to answer all our questions and out our cares to rest. Larry was very attentive to our needs and answered all our calls in a timely manner. Again, we thank Larry for all his help and knowledgeable input.      

Steve & Linda S — Feb 13, 2018

I would recommend Larry to my friends Larry was great, he answered all of my questions and made the process easy. I would recommend him to my friends, I don't often recommend anybody and things.

William M — Sep 25, 2015

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