Whenever borrowers hear the meaning of a property Equity Conversion Mortgage personal credit line (HECM LOC), also referred to as a reverse mortgage equity credit line, they truly are sometimes not sure just just how it varies from a Home that is traditional Equity of Credit (HELOC). The structures of both loans appear comparable. Both are credit lines guaranteed against your property. Both accrue interest on just the quantity that is lent. Both rates usually are adjustable.
Nevertheless, you will find distinct distinctions which make a reverse home loan line of credit be noticeable. Even though better loan for you personally depends on the facts of the specific situation, the opposite home loan line of credit has several clear-cut benefits within the Residence Equity personal credit line if you’re a senior. That will help you completely understand the essential difference between the 2 credit lines (HECM vs HELOC), we’ve created an evaluation chart below for fast guide along side more in-depth answers to the questions we’re asked the essential.