Selling Your Home Outright vs. Getting a Reverse Mortgage vs. Getting a Home Equity Loan: What to Consider
When it comes time to sell your home, you have a few different options for how to receive the proceeds. You can sell your home outright, get a reverse mortgage, or get a home equity loan. Each option has different benefits and drawbacks that you should consider before making a decision.
If you sell your home outright, you will receive all of the proceeds from the sale. This can be a good option if you need the money right away and don’t want to make any monthly payments. However, you will likely get less money for your home than if you took out a loan against it.
A reverse mortgage allows you to stay in your home and receive money each month. This can be a good option if you need extra income but don’t want to sell your home. However, you will owe the money back when you sell the home or die.
A home equity loan lets you borrow money against the value of your home. This can be a good option if you need money for a one-time purchase and can afford to make monthly payments. However, you could lose your home if you can’t make the payments.