How is a Reverse Mortgage different than a home equity loan?
A home equity loan and a Reverse Mortgage use the equity you have in your home to provide you with readily available cash. The major difference is that with a home equity line of credit you are responsible to make monthly payments on principle and interest. Also, on the home equity loan you must have sufficient income versus debt ratio with good credit to qualify. With a Reverse Mortgage, income and your credit scores are not a factor and you do not have to make monthly payments as long as you stay in the home.
