Can I retain ownership of my home? |
| Yes |
Reverse Mortgage |
With a reverse mortgage, you keep your home. You continue living in your house until you permanently leave, and you retain title and ownership. The bank does not own your home. |
| Yes |
Home Equity Loan |
| Yes |
Mortgage Refinance |
|
Is income required for eligibility? |
| No |
Reverse Mortgage |
A reverse mortgage is based on the market value of your home. No income or credit verification are needed for qualification. This attribute represents a significant advantage for those who are retired or retiring in the near future. |
| Yes |
Home Equity Loan |
| Yes |
Mortgage Refinance |
|
Is credit verification required? |
| No |
Reverse Mortgage |
Age and property are the only lending criteria needed for a reverse mortgage. Credit and income are not factors in determining eligibility. Because of this, reverse mortgages may be a more accessible solution in some financial situations. |
| Yes |
Home Equity Loan |
| Yes |
Mortgage Refinance |
|
Do I have to make monthly payments? |
| No |
Reverse Mortgage |
There are no monthly payments with a reverse mortgage. The balance of your loan is not due for repayment until you permanently leave your home. This eliminates the burden of monthly payments that come with the typical home equity loan or mortgage refinance. |
| Yes |
Home Equity Loan |
| Yes |
Mortgage Refinance |
|
Is there a penalty for early pre-payment if I decide to move or sell my house? |
| No |
Reverse Mortgage |
The reverse mortgage is repaid in one payment, when you move, sell, or pass away. You may decide to move out of your home at any time after you have received the reverse mortgage and repay the loan. There is no penalty for early repayment. |
| Yes |
Home Equity Loan |
| Yes |
Mortgage Refinance |
|
Do I need to get my home appraised? |
| Yes |
Reverse Mortgage |
A home appraisal for a reverse mortgage is very important because the loan amount is based on your property?s market value. In fact, because your home is appraised, a higher loan amount may be available to you than types of loans. |
| No |
Home Equity Loan |
| Yes |
Mortgage Refinance |
|
How long does it take to receive funding? |
| 40-60 days |
Reverse Mortgage |
A reverse mortgage is a long-term solution that releases more cash than a home equity loan or a mortgage refinance. As such, it takes longer to fund than other financial options. |
| 14-20 days |
Home Equity Loan |
| 20-45 days |
Mortgage Refinance |
|
