Compare a reverse mortgage and a HELOC to decide which way to tap home equity fits your situation.
Educational estimate. Actual proceeds depend on rates, HUD limits and a HECM counselor.
We weigh your age (62+ required for a reverse mortgage), whether you can make monthly payments, and your goals to suggest which option fits.
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A HELOC is a low-cost line of credit you draw on and repay monthly — great if you have income and want to preserve equity. A reverse mortgage requires no monthly payment and is built for retirees 62+ who are cash-poor but house-rich, at the cost of higher fees and a growing balance. The honest deciding factor is simple: if you can comfortably make monthly payments, a HELOC almost always costs less; if you can’t, the reverse mortgage exists for exactly that reason.
HELOC is cheaper if you can make payments; a reverse mortgage suits those who can't or won't.
No — only the reverse mortgage. A HELOC has no age requirement.
A HELOC, since you pay it down; a reverse mortgage balance grows.
No — it's an educational comparison.