Reverse Mortgage Second vs. HELOC: What's the Difference?
Both a HELOC and a reverse mortgage second can provide access to home equity. But they work very differently. Here is a side-by-side look at the key differences.
When eligible older homeowners want to access home equity, two options that often come up are a HELOC and a reverse mortgage second. Both involve borrowing against your home equity, but they are structured very differently.
A HELOC generally requires monthly interest payments and has no age requirement. A reverse mortgage second is a proprietary product for eligible older homeowners — certain products may not require a monthly principal-and-interest payment on the second lien, and it is designed to sit behind an existing first mortgage.
The right option depends on your age, existing mortgage, equity, income, cash-flow needs, and long-term plans.
NMLS Individual #1087365 · NMLS Company #1147207 · CA DRE #01265685
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Written by
Stephanie Pedley
Mortgage professional and real estate broker with 34+ years of experience in lending, underwriting, and loan strategy. Licensed in California, Colorado, Texas, and Ohio. NMLS Individual #1087365 · NMLS Company #1147207 · CA DRE #01265685.
