Reverse Mortgage vs Line Of Credit

 

Reverse mortgage is considered to be one of the most sought after option by senior citizens for borrowing money by pledging their home. Reverse mortgage like other money borrowing options too has its own advantages and disadvantages.

When senior people believe it is time for their homes which was their lifetime investment to pay off instead of standing tall with roof over the head and so by pledging it for either adjustable interest rate as that in line of credit or fixed interest rate reverse mortgage they can get money to take care of their old age expenses and to fulfill post retirement desires.

In reverse mortgage, the money is given in the beginning as a whole and the home is sold as when the borrower demands or the borrower dies, whereas in the line of credit home equity people can take money as they need, and the remaining portion of money which is not taken accrues interest and the home being sold or repayment has to be made only after the whole loan money is used.