Is a home equity loan a better option than a reverse mortgage?

Tough question to answer...there are a lot of factors to consider in making that decision, especially one potentially involvong a reverse mortgage. If you would like to dicuss it with me you are welcome to give me a call. Travis Torcoletti (803) 381-5149 Ikon Financial Group.

It depends. If you are over 62 and want a steady stream of income, or the ability to borrower periodically and not have to pay it back, then a reverse mortgage has benefits. With a HELOC, once you borrow, interest begins to accrue and payments of at least the interest are due each month. With a reverse mortgage, the account is designed to borrow from itself to pay the interest as it accrues so you never have to dip into your pocket to pay it back. The best way to determine if a HELOC or Reverse Mortgage is best for you, meet with a local Mortgage Banker/Broker that is a certified Reverse Mortgage Specialist. They will be able to walk you through your specific needs/issues and help you determine which best fulfills your needs. Don't forget to check out your selected Mortgage Originator at the National Mortgage Licensing System at www.NMLSConsumerAccess.org ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ Licensed in California and Arizona ~ www.LoansA2z.com 888-889-9950

Reverse mortgages have very high costs associated with establishing them.. HELOC's have very little costs... however they are 2 very different products, so knowing what your trying to accomplish would be helpful... in general, RMs will give you the ability to receive a large upfront one time payout, and no monthly payments, or no upfront payment, but regular monthly payments to you... and there's also an option with a combination of some upfront and some monthly as well... with a HELOC, you apply once, but you have unlimited access to your home's equity for the first 10 years, without having to apply each time you need funds.. Knowing how these two products work and what the positives and negatives would be are beneficial in making a good decision, so the best advice I can give you is to contact a LOCAL mortgage broker familiar with RMs and HELOC's, and apply with them. Not the local "Big" bank, and certainly not one of those 50 states internet lenders...By applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with numerous lenders, seeking out the best loan terms for your particular scenario. Because he has lower overhead, he can offer you lower rates and lower fees than most of the larger lenders.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

It really depends on your goals and needs. Need more info.

FACTORS that can influence.... are you retired? working? age? equity in home? what type is your first mortgage or is it paid?? linda yourloanpartnerforlife@live.com

As you are seeing from other answers, it really depends on the details of your situation and what you are trying to accomplish. Reverse is a great option for some borrowers but in the long run the costs are pretty high. If you don't need the special features and flexibility of that type loan, an equity loan or even refinancing to obtain cash out of your home may be better options. You need to find a lender you trust to help you work through the options and give you good advise. Most reverse mortgage lenders do not handle equity loans or regular mortgages, and vce-versa.