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    • HOME
    • ABOUT US
    • FAQ
    • VIDEO WHY REVERSE MTG.?
    • WHY US FOR YOUR REVERSE
    • DISPELLING COMMON MYTHS
    • DEATH & REVERSE MORTGAGE
    • GOING TO ASSISTED LIVING?
    • REVERSE NOW OR LATER ?
    • REVERSE AND CREDIT SCORE
    • REVERSE MTG PROS AND CONS
    • REVERSE FOR HOME PURCHASE
    • REVERSE MORTGAGE CONDOS
    • REFINANCING A REVERSE MTG
    • REVERSE MORTGAGE OR HELOC
    • THE APPLICATION PROCESS
    • REVERSE MORTGAGE INFO
    • ILLINOIS COUNTIES SERVED
    • ILLINOIS JUMBOREVERSE MTG
    • COOK COUNTY
    • WILL COUNTY
    • GRUNDY COUNTY
    • LAKE COUNTY
    • McHENRY COUNTY
    • KENDALL COUNTY
    • KANE COUNTY
    • WINNEBAGO COUNTY
    • DuPAGE COUNTY
    • BOONE COUNTY
    • LaSALLE COUNTY
    • KANKAKEE COUNTY
    • ST. CLAIR COUNTY
    • FLORIDA COUNTIES SERVED
    • FLORIDA JUMBO REVERSE MTG
    • BROWARD COUNTY
    • MIAMI-DADE COUNTY
    • PALM BEACH COUNTY
    • PINELLAS COUNTY
    • BREVARD COUNTY
    • HILLSBOROUGH COUNTY
    • SARASOTA COUNTY
    • DUVAL COUNTY
    • LEE COUNTY
    • LEON COUNTY
    • COLLIER COUNTY
    • PASCO COUNTY
    • ORANGE COUNTY
    • VOLUSIA COUNTY
    • SEMINOLE COUNTY
    • Contact Us
  • HOME
  • ABOUT US
  • FAQ
  • VIDEO WHY REVERSE MTG.?
  • WHY US FOR YOUR REVERSE
  • DISPELLING COMMON MYTHS
  • DEATH & REVERSE MORTGAGE
  • GOING TO ASSISTED LIVING?
  • REVERSE NOW OR LATER ?
  • REVERSE AND CREDIT SCORE
  • REVERSE MTG PROS AND CONS
  • REVERSE FOR HOME PURCHASE
  • REVERSE MORTGAGE CONDOS
  • REFINANCING A REVERSE MTG
  • REVERSE MORTGAGE OR HELOC
  • THE APPLICATION PROCESS
  • REVERSE MORTGAGE INFO
  • ILLINOIS COUNTIES SERVED
  • ILLINOIS JUMBOREVERSE MTG
  • COOK COUNTY
  • WILL COUNTY
  • GRUNDY COUNTY
  • LAKE COUNTY
  • McHENRY COUNTY
  • KENDALL COUNTY
  • KANE COUNTY
  • WINNEBAGO COUNTY
  • DuPAGE COUNTY
  • BOONE COUNTY
  • LaSALLE COUNTY
  • KANKAKEE COUNTY
  • ST. CLAIR COUNTY
  • FLORIDA COUNTIES SERVED
  • FLORIDA JUMBO REVERSE MTG
  • BROWARD COUNTY
  • MIAMI-DADE COUNTY
  • PALM BEACH COUNTY
  • PINELLAS COUNTY
  • BREVARD COUNTY
  • HILLSBOROUGH COUNTY
  • SARASOTA COUNTY
  • DUVAL COUNTY
  • LEE COUNTY
  • LEON COUNTY
  • COLLIER COUNTY
  • PASCO COUNTY
  • ORANGE COUNTY
  • VOLUSIA COUNTY
  • SEMINOLE COUNTY
  • Contact Us

REVERSE MORTGAGE OR HOME EQUITY LINE OF CREDIT?

 REVERSE MORTGAGE SECOND MORTGAGES NOW AVAILABLE!

Keep your low interest first mortgage  and add a reverse mortgage second with no monthly payments giving you more cash. Check out this option!


Borrowers are responsible for paying property taxes, homeowner’s insurance, and for home maintenance.


HELOC

Principal and interest must typically be paid monthly.

LOC Growth LOC allows unused line of credit to grow at the same  rate the borrower is paying on the used credit, thus the line of credit  amount grows. Does not grow. What you signed up for will remain the same.   Due Date Typically when the last borrower leaves the home, or  does not pay taxes and insurance, or otherwise does not comply with  loan terms. Typically due at the end of 10 years.   Pre-Payment Penalty .Usually has penalty.   Government Insured? Yes, by the Federal Housing Administration (FHA). Usually not insured by the FHA.   Annual Fee No fee to keep the loan.. Annual fee to keep the loan open.    * Borrowers must continue to pay property taxes, homeowner’s insurance, and home maintenance, as well as comply with loan terms. 

What is a HECM loan?
Insured by the Federal Housing Administration (FHA), (HECM) stands for  Home Equity Conversion Mortgage. What are Home Equity Conversion  Mortgages, you may wonder? An FHA HECM loan, also known as an FHA reverse mortgage,  is a type of home loan where a borrower aged 62 or older can pull some  of the equity from their home without paying a monthly mortgage payment  or moving out of their home. Borrowers are responsible for paying  property taxes, homeowner’s insurance, and for home maintenance. The  funds from this equity can be disbursed to the borrower in a few ways,  including a HECM Line of Credit.

About a Home Equity Line of Credit or HELOC
A Home Equity Line of Credit is another form of credit where your home  is the collateral. You may learn how to get a home equity line of credit  by visiting your bank. From your bank you may then get approved for a  certain amount based on the equity in your home. In addition, there is  only a set time during which you may borrow. You may or may not be  allowed to renew after this allowed borrowing time frame. More than  likely, you will repay in a monthly minimum payment that encompasses the  interest combined with a part of the principal amount.

Many HELOCs are an open line of  available credit, but a second mortgage is usually an outright loan of a  fixed amount rather than just an available home line of credit. Second  mortgages are characterized by a fixed amount of money lent with that  amount having to be repaid in equal payments over a fixed period.


The Comparison
The defining advantage of a HECM over a HELOC, and the characteristic that ends up winning over most  seniors, is the fact that the HECM does not require you to pay monthly  payments to the lender. You may draw on your credit line as needed  without making a monthly payment. For a reverse mortgage loan,  borrowers will remain responsible for paying property taxes,  homeowner’s insurance, and for home maintenance. With the HECM Line of  Credit, re-payment is only required after the last borrower leaves the  home, as long as the borrower complies with all loan terms such as continuing to pay taxes and insurance. The HELOC, on the other hand, requires a monthly payment immediately.

Another one of the reverse mortgage  advantages over the HELOC is the reliability that the HECM line of  credit will stay open and available when needed. HELOCs are notorious  for suddenly being decreased or being closed altogether, especially if  the borrower has not been actively drawing from the loan. This is  difficult because many borrowers prefer to have a line of credit  available and open to withdraw from only if the time comes when a need  arises. To be forced to stay actively borrowing on the credit line in  order to keep an open status or finding out the line of credit has been  decreased or closed suddenly would be frustratingly inconvenient for  anyone.

The HECM LOC also has an advantage of  significant line of credit growth potential. Taking out a HECM early in  retirement and keeping the credit line open for use in the future  proves to be a popular strategic plan. The unused line of credit grows  at current expected interest rates; therefore, taking a HECM at 62 gives  your line of credit time to grow as opposed to waiting until 82,  especially if the expected reverse mortgage interest rates increase over  time.

These are just a few of the major  advantages of the HECM Line of Credit versus a HELOC. 

Sources:

“HECM vs. HELOC.” ReverseMortgage.net. N.P. N.D. Web. 19 Aug 2014. https://reversemortgage.net/hecm-versus-heloc/

“Home Equity Line of Credit versus  HECM Line of Credit.” ReverseMortgageProsperity.com. Reverse Mortgage  Prosperity. N.D. Web. 20 Aug 2014. https://reversemortgageprosperity.com/home-equity-line-of-credit-versus-hecm-line-of-credit/

“Title Bout.” mlsreversemortgage.com. MLS Mortgage Reverse Mortgage Advisors. 16 July 2014. Web. 19 August 2014.

Files coming soon.

REVERSE MORTGAGE VERSUS HOME EQUITY LINE OF CREDIT

 

No monthly mortgage payments from you. *

Borrowers are responsible for paying property taxes, homeowner’s insurance, and for home maintenance.


HELOC

Principal and interest must typically be paid monthly.

Reverse mortgage line of credit allows unused line of credit to grow at the same  rate the borrower is paying on the used credit, thus the line of credit  amount grows. Home equity line of credit does not grow. What you signed up for will remain the same.  Reverse mortgage due date is typically when the last borrower leaves the home, or  does not pay taxes and insurance, or otherwise does not comply with  loan terms. Home equity line of credit typically due at the end of 10 years.   Reverse Mortgage has no prepayment penalty. Home equity line of credit usually has penalty.   Government Insured? Yes,for reverse mortgage by the Federal Housing Administration (FHA).Home equity line of credit usually not insured by the FHA.   Reverse mortgage has no annual fee to keep the loan open. Home equity line of credit has annual fee to keep the loan open.    * Borrowers must continue to pay property taxes, homeowner’s insurance, and home maintenance, as well as comply with loan terms.

 

What is a HECM loan?
Insured by the Federal Housing Administration (FHA), (HECM) stands for  Home Equity Conversion Mortgage. What are Home Equity Conversion  Mortgages, you may wonder? An FHA HECM loan, also known as an FHA reverse mortgage,  is a type of home loan where a borrower aged 62 or older can pull some  of the equity from their home without paying a monthly mortgage payment  or moving out of their home. Borrowers are responsible for paying  property taxes, homeowner’s insurance, and for home maintenance. The  funds from this equity can be disbursed to the borrower in a few ways,  including a HECM Line of Credit.

About a Home Equity Line of Credit or HELOC
A Home Equity Line of Credit is another form of credit where your home  is the collateral. You may learn how to get a home equity line of credit  by visiting your bank. From your bank you may then get approved for a  certain amount based on the equity in your home. In addition, there is  only a set time during which you may borrow. You may or may not be  allowed to renew after this allowed borrowing time frame. More than  likely, you will repay in a monthly minimum payment that encompasses the  interest combined with a part of the principal amount.

Many HELOCs are an open line of  available credit, but a second mortgage is usually an outright loan of a  fixed amount rather than just an available home line of credit. Second  mortgages are characterized by a fixed amount of money lent with that  amount having to be repaid in equal payments over a fixed period.


The Comparison
The defining advantage of a HECM over a HELOC, and the characteristic that ends up winning over most  seniors, is the fact that the HECM does not require you to pay monthly  payments to the lender. You may draw on your credit line as needed  without making a monthly payment. For a reverse mortgage loan,  borrowers will remain responsible for paying property taxes,  homeowner’s insurance, and for home maintenance. With the HECM Line of  Credit, re-payment is only required after the last borrower leaves the  home, as long as the borrower complies with all loan terms such as continuing to pay taxes and insurance. The HELOC, on the other hand, requires a monthly payment immediately.

Another one of the reverse mortgage  advantages over the HELOC is the reliability that the HECM line of  credit will stay open and available when needed. HELOCs are notorious  for suddenly being decreased or being closed altogether, especially if  the borrower has not been actively drawing from the loan. This is  difficult because many borrowers prefer to have a line of credit  available and open to withdraw from only if the time comes when a need  arises. To be forced to stay actively borrowing on the credit line in  order to keep an open status or finding out the line of credit has been  decreased or closed suddenly would be frustratingly inconvenient for  anyone.

The HECM LOC also has an advantage of  significant line of credit growth potential. Taking out a HECM early in  retirement and keeping the credit line open for use in the future  proves to be a popular strategic plan. The unused line of credit grows  at current expected interest rates; therefore, taking a HECM at 62 gives  your line of credit time to grow as opposed to waiting until 82,  especially if the expected reverse mortgage interest rates increase over  time.


Sources:

“HECM vs. HELOC.” ReverseMortgage.net. N.P. N.D. Web. 19 Aug 2014. https://reversemortgage.net/hecm-versus-heloc/

“Home Equity Line of Credit versus  HECM Line of Credit.” ReverseMortgageProsperity.com. Reverse Mortgage  Prosperity. N.D. Web. 20 Aug 2014. https://reversemortgageprosperity.com/home-equity-line-of-credit-versus-hecm-line-of-credit/

“Title Bout.” mlsreversemortgage.com. MLS Mortgage Reverse Mortgage Advisors. 16 July 2014. Web. 19 August 2014.

Files coming soon.

REVERSE MORTGAGE OR HOME EQUITY LINE OF CREDIT?

 

No monthly mortgage payments from you. *

Borrowers are responsible for paying property taxes, homeowner’s insurance, and for home maintenance.


HELOC

Principal and interest must typically be paid monthly.

Reverse mortgage line of credit allows unused line of credit to grow at the same  rate the borrower is paying on the used credit, thus the line of credit  amount grows. Home Equity Loan does not grow. What you signed up for will remain the same on home equity line of credit vs, growth on reverse.         Reverse line of credit due date typically when the last borrower leaves the home, or  does not pay taxes and insurance, or otherwise does not comply with  loan terms. Home equity line of credit ypically due at the end of 10 years.   Pre-Payment Penalty no penalty on reverse mortgage line of credit. Home equity line of credit usually has penalty.   Government Insured?Reverse mortgage insured by FHA. Hoem equity line of credit usually not insured by the FHA. Reverse has no annual fee to keep the loan open.   Home equity line usually has  annual fee to keep the loan open.    * Borrowers must continue to pay property taxes, homeowner’s insurance, and home maintenance, as well as comply with loan terms. 


What is a HECM loan?
Insured by the Federal Housing Administration (FHA), (HECM) stands for  Home Equity Conversion Mortgage. What are Home Equity Conversion  Mortgages, you may wonder? An FHA HECM loan, also known as an FHA reverse mortgage,  is a type of home loan where a borrower aged 62 or older can pull some  of the equity from their home without paying a monthly mortgage payment  or moving out of their home. Borrowers are responsible for paying  property taxes, homeowner’s insurance, and for home maintenance. The  funds from this equity can be disbursed to the borrower in a few ways,  including a HECM Line of Credit.


About a Home Equity Line of Credit or HELOC
A Home Equity Line of Credit is another form of credit where your home  is the collateral. You may learn how to get a home equity line of credit  by visiting your bank. From your bank you may then get approved for a  certain amount based on the equity in your home. In addition, there is  only a set time during which you may borrow. You may or may not be  allowed to renew after this allowed borrowing time frame. More than  likely, you will repay in a monthly minimum payment that encompasses the  interest combined with a part of the principal amount.

Many HELOCs are an open line of  available credit, but a second mortgage is usually an outright loan of a  fixed amount rather than just an available home line of credit. Second  mortgages are characterized by a fixed amount of money lent with that  amount having to be repaid in equal payments over a fixed period.


The Comparison
The defining advantage of a HECM over a HELOC, and the characteristic that ends up winning over most  seniors, is the fact that the HECM does not require you to pay monthly  payments to the lender. You may draw on your credit line as needed  without making a monthly payment. For a reverse mortgage loan,  borrowers will remain responsible for paying property taxes,  homeowner’s insurance, and for home maintenance. With the HECM Line of  Credit, re-payment is only required after the last borrower leaves the  home, as long as the borrower complies with all loan terms such as continuing to pay taxes and insurance. The HELOC, on the other hand, requires a monthly payment immediately.

Another one of the reverse mortgage  advantages over the HELOC is the reliability that the HECM line of  credit will stay open and available when needed. HELOCs are notorious  for suddenly being decreased or being closed altogether, especially if  the borrower has not been actively drawing from the loan. This is  difficult because many borrowers prefer to have a line of credit  available and open to withdraw from only if the time comes when a need  arises. To be forced to stay actively borrowing on the credit line in  order to keep an open status or finding out the line of credit has been  decreased or closed suddenly would be frustratingly inconvenient for  anyone.

The HECM LOC also has an advantage of  significant line of credit growth potential. Taking out a HECM early in  retirement and keeping the credit line open for use in the future  proves to be a popular strategic plan. The unused line of credit grows  at current expected interest rates; therefore, taking a HECM at 62 gives  your line of credit time to grow as opposed to waiting until 82,  especially if the expected reverse mortgage interest rates increase over  time.


“HECM vs. HELOC.” ReverseMortgage.net. N.P. N.D. Web. 19 Aug 2014. https://reversemortgage.net/hecm-versus-heloc/

“Home Equity Line of Credit versus  HECM Line of Credit.” ReverseMortgageProsperity.com. Reverse Mortgage  Prosperity. N.D. Web. 20 Aug 2014. https://reversemortgageprosperity.com/home-equity-line-of-credit-versus-hecm-line-of-credit/

“Title Bout.” mlsreversemortgage.com. MLS Mortgage Reverse Mortgage Advisors. 16 July 2014. Web. 19 August 2014.

Files coming soon.

Senior Reverse Mortgage Group.Inc. Illinois and Florida Residential Mortgage Broker License #1606823.






 



This  material is not from HUD or FHA and has not been reviewed by HUD or a  government agency. 



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