How does a Reverse Mortgage differ
from a traditional home equity loan?

 

Both programs let you convert your home’s equity into cash.

 

With a traditional second mortgage, or home equity loan

• You must meet all of the lender’s credit and income standards.
• You must have sufficient income versus debt ratio.
• You must make monthly payments that begin immediately and continue until the entire loan, including all interest, is repaid.
• Should you ever fail to make the necessary monthly payments, the lender could foreclose on you, forcing the sale of your home.

 

With a Reverse Mortgage
• Your credit and income ARE NOT factors in the approval process.
• With a Reverse Mortgage, there are NEVER any monthly payments.
• You are not required to make any payments—your Reverse Mortgage pays you. This is why it’s called a “reverse” mortgage.

 

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