There are two major differences between home equity loans and reverse mortgages. The first is that, with a reverse mortgage, there are no income or credit score requirements in order to be approved for the loan. A home equity loan requires the borrower to pay a monthly payment to the lender, so they do have credit and income requirements. The second difference is that when one gets a reverse mortgage, they do not need to make monthly payments to the lender to pay back the loan. Instead, the loan is repaid at one time when the borrower permanently leaves the home. Of course, you can also pay any part, or all, of the loan back at anytime if you choose.

Because reverse mortgages are structured differently than regular real estate loans, they can be difficult to understand. If you have any other questions, feel free to contact one of our AAG Professionals. They will be able to walk you through the process and answer all your questions.

Disclaimer: The response above is not intended to be anything other than the educated opinion of the author. It should not be relied upon as financial advice. America Advisors Group recommends speaking directly with an AAG Reverse Mortgage Professional regarding your specific situation and needs. Please call 1 (800) 466-0572 to receive AAG's information pack with a FREE DVD and Brochure featuring Former Senator Fred Thompson.