Many homeowners assume a home equity loan and a reverse mortgage are the same, but they are very different. A home equity loan requires monthly payments of principal and interest, while a reverse mortgage allows homeowners age 62+ to stay in their home without monthly mortgage payments, as long as property taxes, insurance, and maintenance are current.

With rising interest rates and complex retirement income needs, seniors are increasingly comparing these options to determine which best fits their goals. Analysts note that product features, terms, and repayment structures vary widely, making it important to understand the differences (Mortgage Cadence, 2024).

Secure Lending Inc. offers a side-by-side review of options so you can clearly see which path aligns with your goals, timeline, expected cash flow, and legacy intentions, helping you make a confident decision.

References: Mortgage Cadence. (2024, October 15). The return of reverse mortgage lending. Retrieved from https://www.mortgagecadence.com/blog/the-return-of-reverse-mortgage-lending/