Posted on: 29th Jan, 2010 03:44 am
What are the up front charges for doing a reverse mortgage vs a line of credit? :(
Hi steeda,
The upfront charges on a reverse mortgage will be higher what that on a home equity line of credit (HELOC). The interest rate on a HELOC is generally high. You will have to make payments on the loan at a high interest rate. On the other hand, you do not have to make any monthly payment whatsoever on a reverse mortgage. Instead, you will receive payments on the reverse mortgage and the loan will have to be paid off only when you sell off or vacate your property. Thus, the upfront cost on a reverse mortgage is generally higher than that on any other type of loans.
The upfront charges on a reverse mortgage will be higher what that on a home equity line of credit (HELOC). The interest rate on a HELOC is generally high. You will have to make payments on the loan at a high interest rate. On the other hand, you do not have to make any monthly payment whatsoever on a reverse mortgage. Instead, you will receive payments on the reverse mortgage and the loan will have to be paid off only when you sell off or vacate your property. Thus, the upfront cost on a reverse mortgage is generally higher than that on any other type of loans.