• If you get a regular mortgage, you’ll likely get a better rate than a reverse mortgage; probably around 3%. But you’ll have to income qualify and more importantly, you’ll need to make hefty principle and interest payments to pay it down, thereby reducing your cash flow.

    If you get a home equity line of credit, you have to income qualify for it again, and you’ll probably be paying around 4.45% or more. You can withdraw money from it to make payments on itself (like borrowing more money from a credit card to make the minimum payments on the credit card), but eventually it will max out and you’ll have to re-qualify at that time or pay it out.

    A reverse mortgage rate of 5.59% is higher but there are never any payments and you don’t have to qualify like a regular mortgage or line. The trade off is a higher rate in exchange for no payments.

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