MarketWatch: Reverse Mortgages Trump HELOCs for Some

Retirees can tap their home equity in several ways to provide extra cash flow in their non-working years, but a reverse mortgage may be a better alternative for some when compared to home equity line of credits (HELOCs), reports MarketWatch.  

Though it largely depends on an individual’s particular situation, reverse mortgages may trump their HELOC counterparts when it comes to supplementing retirement savings, says the recent MarketWatch article reprinted from Next Avenue, a news organization catering to Americans over age 50. 

The article offers readers three tips on how to access their home equity: reverse mortgages, HELOCs and home equity loans. While each differs from the next in terms of interest rates and fees, among other critical guidelines, reverse mortgages may be worth considering for homeowners age 62 and older who aren’t making decisions simply for today, but for tomorrow and the future as well.


Gerri Detweiler, director of consumer education at, urges prospective borrowers to be realistic about their future income before signing on for a line of credit. 

“If you can’t make the payments, you could risk losing your home,” says Detweiler. “So if you won’t have much income but do have a lot of assets, a reverse mortgage may be a better option.”

Read more at MarketWatch

Written by Jason Oliva

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  • Although not a complete presentation on the use of a reverse mortgage in retirement, neither was the article negative. It at least passed the acid test since it did not refer to reverse mortgage proceeds as income.

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