Evaluating Reverse Mortgages vs. Equity Sharing Agreements vs. Selling Property Outright

What's the best way to access the equity in your home? There are three main options: reverse mortgage, equity sharing agreement, and selling property outright. Here's a look at the key considerations for each option.

Reverse Mortgage

With a reverse mortgage, you borrow against the value of your home and don't have to make any payments until you leave the home or die. The loan is repaid from the sale of the home when it's sold, either by your heirs or the lender.

Equity Sharing Agreement

In an equity sharing agreement, you sell a portion of your home's equity to an investor in exchange for cash. You continue to live in and own the home, but the investor has a claim on a portion of the equity. When you sell the home, the investor gets their portion of the proceeds.

Selling Property Outright

If you sell your property outright, you'll get the full amount of the sale, minus any fees and commissions. You'll need to find another place to live, but you won't have any ongoing obligations to the buyer.

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