Are monthly payments required?
Reverse Mortgage: No monthly payments are required for the life of the loan. Home Equity Line of Credit ( HELOC): Yes, usually interest only, for an initial drawdown period, then payments increase to amortize the loan balance.
Do I have to pay upfront costs?
The adjustable-rate reverse mortgage closing costs include a premium for FHA insurance, costs are similar to conventional loans and may vary depending on individual program facts. The HELOC, also an adjustable-rate loan, is not FHA insured so no premiums are required. Upfront costs vary by lender but generally feature low or no costs depending on lender promotions and borrower circumstances.