Whats the difference between a reverse mortgage and a bank home equity loan or second mortgage?
With a traditional second mortgage, or a home equity line of credit, (also known as forward mortgages) you must have sufficient income versus debt ratio to qualify for the loan, and you are required to make monthly mortgage payments. The reverse mortgage is different in that it pays you, and is available regardless of your current income. You are not required to pay it back until you no longer use your home as your principal residence.
