Think twice before choosing HELOC over HECM

How, when and why to take a reverse mortgage

By Inman News Feed
Add Comment Add Comment | Comments: 1 | Posted Sep. 10, 2012

Share this Story:

3. The borrower using a HELOC as a source of additional cash is dependent upon being able to draw against the unused portion of the credit line. But the lender can cancel the unused line at any time, and will if a question arises about the borrower's credit, income or property value. This is not a risk with a HECM.

Next week: more potential uses of HECMs.

The writer is professor of finance emeritus at the Wharton School of the University of Pennsylvania. Comments and questions can be left at www.mtgprofessor.com.

Contact Jack Guttentag:
Email Email Letter to the Editor Letter to the Editor

Copyright 2012 Jack Guttentag

Prev| Page: 1 2
Add to favoritesAdd to Favorites PrintPrint Send to friendSend to Friend

COMMENTS

Comments 1 - 1 of 1
Report Violation

1. constancebrown730 said... on Mar 5, 2013 at 01:42PM

“Thank you for the sensible critique. Me and my neighbor were just preparing to do some research about this. We got a grab a book from our local library but I think I learned more from this post. I am very glad to see such great information being shared freely out there.Search reverse mortgage lenders direct.”

ADD COMMENT

Rate:
(HTML and URLs prohibited)
User Guidelines