A reverse mortgage is great for those who want a source of cash with no payments, no hassle and little risk.
But since reverse mortgage lenders don’t recoup their investment for years (until you sell or leave your home), they charge higher interest rates.
Example: Assume you borrow $100,000. The average interest you’d pay in the first year is:
$326 per month for a HELOC at 3.95%
$528 per month for a reverse mortgage at 6.24%
Because the interest cost is so much less, a HELOC preserves your precious home equity longer. That makes the Seniors HELOCs a much better option for those who: