When Is A Reverse Mortgage Better Than A HELOC

When Is A Reverse Mortgage Better Than A HELOC

Only one situation. When a person is elderly, cannot work any longer, has no fixed income of any kind and still has a mortgage with more than 20% of the home’s value still due. The reason for this is simple. The bank cannot approve this person for a HELOC, just like they couldn’t approve that same person for a refinance or even a mortgage. Therefore, in this situation a reverse mortgage is required to access the equity. The additional benefit to a reverse mortgage is its ability to lend more than the value of the home, sometimes up to 110% LTV.

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