If you’re thinking about taking out a reverse mortgage, consider a HELOC instead. Financial experts on MSNBC suggest that home equity lines of credit are a better bet:

“Reverse mortgages work by basically taking out the equity in your home — selling back what you own in the home — however, reverse mortgages in particular are packed with fees that can lose you up to 20 percent of your equity. If you’re really feeling hardship, take out a HELOC, home equity line of credit, instead. It can be a tax deduction for her as well and all you pay is the interest and maybe small administration fees.”

Lower fees plus a tax deduction makes the decision a no-brainer for most homeowners.

See Also:

No Retirement HELOCs for Baby Boomers?

Tags | equity, Heloc, home equity line of credit, reverse mortgage