Reverse mortgages and home equity loans allow you to access your home’s equity, but how they impact your finances is vastly different.
A reverse mortgage can offer financial breathing room for homeowners over the age of 62, but not everyone is eligible. You typically need at least 50% equity in your home.
All senior homeowners should know and understand the main pros and cons of reverse mortgages before turning their home equity into spendable cash.
Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate mortgages to write unbiased product reviews. If you're 62 years or older, you might be eligible for a reverse mortgage. These types of mortgages allow you to turn your home equity into cash without selling or taking on any monthly payments. You can continue living in the home while using your home equity to support your needs as you age ...
Getting a reverse mortgage requires having sufficient equity on your home, which varies by lender. Here's what you should know about reverse mortgage requirements.
A proprietary reverse mortgage is a loan that allows seniors to draw on their homes' equity. It isn't federally insured like most reverse mortgages.
Home equity conversion mortgages are the most common reverse mortgages, but proprietary and single-purpose reverse mortgages offer other benefits.
A forward mortgage is a typical mortgage used to buy a home, while a reverse mortgage allows homeowners 62 years old or older to withdraw cash from their home equity via a credit line, lump sum, or...
Proprietary reverse mortgages offer larger amounts of money with fewer regulations, while home equity conversion mortgages (HECMs) provide more protection for homeowners.
homeowners with considerable home equity who are age 62 or older to borrow against the value of their home. Unlike a forward mortgage—the type used to buy a home—a reverse mortgage...