Revese Mortgage Home Equity Loan

How Does a Reverse Mortgage Differ From A Home Equity Loan?

While both a reverse mortgage and a home equity loan enable senior citizen homeowners to turn the equity in their home into spendable dollars, there are important differences between these two types of mortgage loan.

First, home equity loans require continous monthly payments in order to repay the loan. These payments begin as soon as the loan is settled. In contrast, a reverse mortgage does not have to be repaid as long as the home remains the senior's primary residence. There are no monthly payment requirements. In other words, the reverse mortgage becomes due only when the senior no longer occupies the property.

Second, home equity loans are based on the borrower's income and credit history. A home equity loan borrower may be required to requalify for the home equity loan after the fixed loan term expires (usually 5-10 years). If the borrower does not qualify, than the lender may require that the loan be paid in full immediately. However, income and credit are not obstacles for seniors who want a reverse mortgage because there are absolutely no income or credit requirements to qualify. It should also be noted that there are no requalification requirements.

If have reverse mortgage questions, please call 1-888-973-8377 for assistance.