Reverse Mortgage Comparison Chart

This chart is provided as a general overview only. Terms and conditions may change by mortgage company. Reverse mortgages do require borrowers to receive HUD-approved counseling prior to closing on loans. As with any loan, study the details of the loan thoroughly. Consulting with an elder-law attorney and estate planner may be advisable.

Reverse Mortgage 30-Year Mortgage Home Equity Line of Credit Payments Lump sum or monthly payments made to you Monthly payments to bank Monthly payments to bank increase as credit is used Credit Approval No credit approval required Required Required Income Requirements None Must meet bank rules Must meet bank rules Employment Requirements None Must meet bank rules Must meet bank rules Credit Line Availability Available Not available Available Credit Line Advances By request of borrower No Credit card / checks tied to home equity Potential to Lose Home Cannot lose home to lender Lender may foreclose Lender may foreclose Medicaid Eligibility May not disqualify Equity pulled out of home may disqualify Equity pulled out of home may disqualify Refinancing Home appreciation factored into credit availability Must refinance and pay closing costs Must refinance and pay closing costs Interest Tax Deductible Tax deductible Tax deductible Limitations on tax deductibility Loan Payback From proceeds of sale of house; any deficiency paid by mortgage insurance - not by borrower or heirs. Borrower or heirs must pay full balance of loan - even if greater than value of the home. Borrower or heirs must pay full balance of loan - even if greater than value of the home. Banker Compensation Paid at time mortgage is set up Paid monthly while open Paid more the higher credit balance is.