Retirement Planning and Your Mortgage: HELOC vs. Reverse Mortgage

A Home Equity Line of Credit (HELOC) and a Reverse Mortgage both allow you to access the equity in your home, but they work very differently. A HELOC is typically best suited for homeowners who are still working, as it requires income and good credit to qualify. It gives you access to funds as needed (up to 65% of your home's value), and you only pay interest on what you use. However, once you retire, qualifying for a HELOC can be difficult because your income is reduced—and you’re still required to make monthly interest payments on any balance.