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.

Verified Reviews

(111)

We Would Totally Recommend Larry We would totally recommend Larry for your reverse mortgage needs. He walked us through every step making sure we understood what was transpiring. We could reach him easily when we had questions. Larry’s guidance was very helpful and in addition he is a very nice man.

Charles & Sharon Tison — May 12, 2020

Larry Was Very Professional & Explained Everything Larry was excellent. He introduced us to the reverse mortgage program and then helped us through all the steps, answering our questions and giving us updates on what was happening. Throughout it all, his knowledge, competence, patience and kindness made it easy for us to understand. It was a pleasure to work with him and we would recommend him to anyone.

Doris Green — May 13, 2020

Great Job Explaining the Details Larry, who was the lead on the reverse mortgage program, was great in explaining what all was in involved up front in the process. He also did a great job in explaining the details and meaning of all the steps in terms that I could clearly understand.

John S — Sep 24, 2019