Two ways to tap your equity — one asks for a payment, one doesn’t
A HELOC is cheap to open but wants a monthly payment, can be frozen, and has to be qualified for. A reverse line costs real money up front but asks for nothing monthly and can’t be cut. This runs both on your numbers so you can see the trade honestly — cost against cash flow — instead of a sales pitch for either one.
On the reverse mortgage page I promise to run a HECM next to a HELOC before ever recommending one. This is that promise as a tool. It won’t tell you a reverse mortgage is always the answer — because it isn’t. For a bounded, short-term need, a HELOC is usually cheaper. For long-term payment relief or standby capital you don’t want a bank to be able to freeze, the reverse math starts to win. Put in your numbers and see which side your situation lands on. For your exact reverse proceeds, use the reverse mortgage calculator.
— Matt Mergo · NMLS #563819Reverse mortgageNo monthly payment · can’t be frozen
HELOCLow upfront · payment required · can be frozen
Educational estimate, not an offer of credit. The reverse figures use a 2% upfront FHA insurance premium on your home’s value (capped at the 2026 limit of $1,249,125), an origination fee by the legal formula, and monthly accrual at your rate plus 0.5% annual insurance; the HELOC is modeled as interest-only on the amount drawn, which is how most standby lines are carried during the draw period. A HELOC’s draw period typically ends around year 10, after which principal-and-interest payments raise the cost. Assumes the home is owned free and clear; an existing mortgage changes both paths. Your real terms depend on qualifying, program, and market. Forest Hills Mortgage · Matt Mergo, NMLS #563819. Equal Housing Opportunity.