Reverse Mortgage VS HE Loans

I’m Miriam Neff, and I’m Valerie Neff Hogan, with Wise Women Managing Money.

M A growing trend is for us vintage folks to age in place.  We’re comfortable, other options are expensive, and our space may be paid for.  We might also wish to spend that home equity ourselves, sometimes for necessities.  Two options are a reverse mortgage or home equity loan.

V Reverse mortgage means the title goes to the source of income.  You get paid monthly and when you leave that lender owns your home. Yes, there are fees involved, some hefty. 

A home equity loan means you get cash, and must pay monthly interest and possibly principle.  Remaining principle will be paid with the ultimate sale of your home. 

M Two choices.  Compare carefully.