TL;DR
The right decision is not the option that feels easiest this month. It is the one that still works for your 3-year and 10-year plan, including family and estate priorities.
What this product page solves
Most expensive reverse-mortgage decisions happen when households optimize short-term payment relief and skip long-horizon cost comparisons. This page consolidates product, service, and checklist guidance into one decision framework.
Reverse mortgage vs HELOC: core difference
| Dimension | Reverse mortgage | HELOC |
|---|---|---|
| Payment pressure | Usually no mandatory monthly mortgage payments | Typically requires at least interest payments |
| Balance behavior | Interest usually compounds into the loan balance | Balance can be managed with repayment discipline |
| Rate sensitivity | Product-specific pricing and compounding trajectory | Often variable and tied to prime-based movement |
| Estate impact | Can reduce net equity over time | Depends on draw size, repayment, and holding period |
| Best-fit use case | Retirees prioritizing payment relief and staying in home | Retirees with stable payment capacity and tighter draw control |
Who this is for
- Homeowners 55+ needing retirement liquidity while staying in their current home.
- Households prioritizing cash-flow stability over maximizing remaining estate equity.
- Families that want a documented, transparent decision process before signing.
Who this is not for
- Borrowers focused on lowest long-run borrowing cost above payment relief.
- Homeowners likely to sell in the near term where break costs can dominate.
- Files without family alignment on estate and repayment expectations.
8 checks before you sign
- Define the exact monthly cash-flow shortfall you need to close.
- Run 3-year and 10-year total-cost scenarios for reverse and HELOC options.
- Stress-test HELOC payment capacity under higher-rate assumptions.
- Estimate reverse-mortgage balance growth using conservative timelines.
- Review prepayment and exit-fee terms before committing.
- Document estate-impact priorities with family stakeholders.
- Compare at least one non-debt alternative (downsizing or phased drawdown).
- Set a periodic review cadence so your strategy can adapt over time.
Psychology traps to avoid
| Mental model | Common trap | Pragmatic correction |
|---|---|---|
| Present bias | Overweighting immediate payment relief | Force both options through the same 10-year model |
| Anchoring | Fixating on a single product quote | Require a side-by-side comparison with written assumptions |
| Regret aversion | Delaying family discussion until after commitment | Document estate objectives before selecting lender terms |
| Confirmation bias | Collecting only evidence for preferred product | Write one steelman case for the alternative path |
Sources
Best next step
- Run HELOC scenarios and compare with reverse-mortgage projections.
- Use the refinance analyzer for alternative equity-access paths.
- Book a retirement mortgage consult before signing final lender terms.
- Start your application once downside-case assumptions are documented.
