Array

Difference Between Reverse Mortgage and Line of Credit

Must Read

Creating Content for Multiple Screens

To make your application universal, create the core code once and write the environment detection and presentation-specific code on...

Building Information System

Information Systems (IS) can be defined as "a set of related elements that gather together, to facilitate collection, processing,...

Bill Consolidation Loans – Quick Debt Elimination

Although there is no way to eliminate debts overnight, you can manage debt in a way that offers quicker...

Small Business Blogging – 10 ways to use blogs to increase business

Business Week magazine said, "blogs will change your business. " The Wall Street Journal said, "the blog...

Nikon D7000, Selecting the Proper ISO

When shooting most landscape scenes, the ISO is the one factor that should only be increased as a last...

A Debt Consolidation Loan Company Like No Other

A debt consolidation loan company handles financial issues people may be having. The professionals working for such a company...
Admin
test

Owning your home and want to benefit from its equity can be a tricky situation – so it’s good to know the difference between reverse mortgage and line of credit loans.There are several ways to get money “out” of your home, and depending on your age and credit status, it can be difficult to decide which way will cost you less in the long run. The first thing to think about when considering the difference between reverse mortgage and line of credit is whether you feel you will be able to repay your loan with timely payments. If you do not have good credit, or cannot repay a loan, a reverse mortgage may be your only viable option.Reverse mortgages do not come without their own risks and requirements. You must be 62 or older in order to apply for a reverse mortgage, which gives you monthly payments based on the equity of your home. While this may seem like the most obvious way to get the equity from your home into a liquid state, there are fees involved. There is a closing fee assessed, just as in any mortgage, and the reverse mortgage must be paid back – including interest – upon the mortgage holder’s death or permanent move from the residence.Line of credit loans are also based on the equity of your home, but they work a bit differently. You will get a line of credit based on how much your home is worth – and the lender will also take into account your debt-to-equity ratio (how much you still owe on your home) as well as the value of your home and your credit score. You will get your money from your home in a lump sum – but you must make payments in order to pay back the loan, and lenders can repossess your home if you do not make payments in a timely fashion.Another difference between reverse mortgages and line of credit is the age requirement. You can be any age and get a line of credit loan, but you must be of a certain age to get a reverse mortgage. Additionally, the amount of money and fees owed to the lender in either case will vary, but usually will be less with the line of credit. Finally, when your loan comes due is a big consideration. You must start paying back your line of credit right away, but a reverse mortgage will generally not come due until after your death.Choosing between the different types of mortgages and loans can be tough. It’s best to sit down with a financial advisor, as well as any estate beneficiaries, in order to choose the best solution for your money needs as well as for your whole family.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

Digital Marketing for Beginners

Digital marketing for starter, Let to basic learning about connecting with your audience in the right place...

What are 7 things poor people do that the rich don’t?

1. poor people watch TV in which people read books how many hours you spend in front of the TV and when...

Top 18 best small business ideas for beginners starting

A small business can be frightening and requires plenty of careful planning there are many small business ideas which can be beneficial...

Summer that makes you happy

We saw were already here I've been thinking about some of the things. I used to do with my husband even though...

4 Point to helpful tips specifically for caregivers

What you need to take a vacation. I know it sounds impossible creative and try to make it work for you almost...

More Articles Like This