Pros and Cons of Reverse Mortgages

Seniors who need cash from their home have three main options: a mortgage, a reverse mortgage and a HELOC. Each of these alternatives has its pros and cons and qualification requirements. Here’s a quick comparison.
  Reverse Mortgage Seniors HELOC™ Seniors Mortgage™
Must make payments No Maybe Yes
Must prove income No Yes Yes
Minimum Age 55 None None
Time to Close (Approx. days) 30 21 21
Maximum Loan-to-Value 11-55% 50-65% 50-80%
Minimum Advance at Closing $20,000 $0 $100,000
Early Repayment Penalties Yes None Yes
Appraisal Cost* Free! Free! Free!
Rate range 5.64% to 6.49% 3.70% to 4.20% 2.59% to 3.99%
Closing Costs (Approx.) $1794 to $2495 $895 $895

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Your best solution starts with the right list of financing options. We’ve built our national reputation on advising clients which of these following products is the most flexible and least costly.

Seniors Reverse Mortgage™

A reverse mortgage is designed for a senior who cannot qualify for, and/or doesn’t want to make payments on, a HELOC or mortgage . There is no proof-of-income requirement. For reference, here are the best available reverse mortgage rates.

Seniors HELOC™

A Seniors HELOC™ (Home Equity Line of Credit) is a special type of HELOC that entails an easier qualification process and doesn’t require monthly payments out of pocket.

Seniors Mortgage™

A Seniors Mortgage™ is a unique mortgage that makes it easier for seniors with lower incomes to qualify. If you can prove your income, you’ll save the most with this type of financing.

*Minimum loan amount for free appraisal is $100,000.