Line of Credit
Reverse mortgages allow elderly homeowners access to cash utilizing their homes equity. In this why it is very much like a Line of Credit, so why get a reverse mortgage over a standard HELOC (Home Equity Line of Credit). The answer is simple and practical, while you are responsible for currently HELOC payments and perhaps even your mortgage payment. With a HECM you will not make any payment to the money you borrowed or to the mortgage as long as you remain in the home. This frees up a any previous mortgage payment and requires no repayment until you sell, refinance, or pass away. Your home is also federally insured to protect you or your heirs from ever owing more than the home is worth.
