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Stock impact report

Reverse mortgage vs. home equity loan or HELOC [CNBC]

Finance of America Companies Inc. Class A (FOA) 
Company Research Source: CNBC
Reverse mortgages home equity loans , and HELOCs are all ways homeowners can tap into the value of their homes for cash. That means the financing for these loans is secured by the home, so rates are typically lower than for other types of debt. However, the bank could force you into foreclosure if you fail to make on-time payments. But that's about where the similarities between these types of mortgages end: Each has different requirements, distribution rules and repayment schedules. Additionally, while home equity loans and HELOCs are usually taken out to fund a specific project or expense, reverse mortgages are typically used as a source of supplemental income in retirement. Here's what you need to know about each type of mortgage, and the type of homeowner that may benefit from each. Talk to us We want to hear your story. Do you have a financial success, goal or stressor you're comfortable sharing with a reporter? Please fill out this quick form Comparing reverse mortg Show less Read more
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