A Home Equity Line of Credit (HELOC) is a handy source of money for any purpose, but is especially useful for unexpected expenses, like when your car suddenly dies or your washer goes on strike or when a loved-one falls ill and insurance won’t cover all the medical expenses. But what if your credit line disappears right when you need it, like during a crash in housing prices? And how do you handle the payment shock when you have to begin paying back the balance and cash advances are no longer available? This is exactly when a Home Equity Conversion Mortgage Line of Credit (HECMLOC) shines. Check out the table below for key differences:
What is a HECMLOC? It’s commonly known as a Reverse Mortgage and you can also use it to pay off your existing mortgage and make your monthly payments go away!