Welcome to “Ask the Pros” – where your questions meet the insights of those who understand the ins and outs of home equity solutions for seniors!
In this series, we tap into the vast knowledge of our dedicated Longbridge Financial team members who are passionate about guiding homeowners through their options, toward a more financially sound retirement. The goal of this series is to cut through the complexities, answer your questions, and help you feel empowered when it comes to making informed financial decisions.
Our next featured “pro” is Larissa Morrell, Director of Product & Strategic Development at Longbridge Financial. With years of experience developing innovative financial solutions for homeowners, Larissa is passionate about helping older adults understand their options and find the right fit for their retirement goals. We sat down to get her perspective on the differences between reverse mortgages, traditional home equity lines of credit (HELOCs), and HELOC For Seniors®.
Let’s jump into the Q&A!
Q: Can you explain the main differences between a reverse mortgage, a traditional HELOC, and HELOC For Seniors®?
A: When older homeowners are weighing their options, the biggest differences come down to repayment terms and age restrictions. With a reverse mortgage there are no required monthly payments—the loan is repaid only when there’s a maturity event, like when you no longer live in the home as your primary residence. Like any mortgage, you must of course keep up with the loan obligations including property taxes, homeowners insurance, and home maintenance. And while most reverse mortgages have a minimum age requirement of 62, some proprietary options—like Platinum by Longbridge—are available to homeowners as young as 55.1
By contrast, traditional HELOCs have no age restrictions and function more like a standard loan: you’re responsible for monthly principal and interest payments, and after the initial draw period (often 10 years), those payments usually increase as the loan enters full repayment.
HELOC For Seniors® blends aspects of both. Like a traditional HELOC, it requires smaller, interest-only payments2 while you remain in your home. But, like a reverse mortgage, the principal balance doesn’t come due until a maturity event occurs, such as when you leave the property or no longer use it as your primary residence. And like some reverse mortgages, it also has a minimum age requirement of 62. This makes it a good option for older homeowners who want access to equity with a more manageable payment structure.
Q: For seniors looking to maintain financial independence and age in place, how might a reverse mortgage or HELOC For Seniors® better support their lifestyle compared to a traditional HELOC?
A: Reverse mortgages and HELOC For Seniors® were both designed with retirement in mind. Unlike a traditional HELOC—which can strain cash flow with required principal and interest payments that may increase drastically over time—reverse mortgages allow borrowers to access home equity without making monthly payments, while HELOC For Seniors® offers lower, interest-only payments for the life of the loan.2
That flexibility becomes increasingly important once you’re retired and your income changes. And speaking of changes to income, reverse mortgages and HELOC For Seniors® also offer more flexibility when it comes to qualifications. While traditional HELOCs focus heavily on current income, senior-focused options look beyond income, making it easier to qualify—even on a fixed budget.
For older homeowners focused on enjoying the home they love and maintaining their independence in retirement, being able to access cash while either eliminating monthly payments altogether2 (with a reverse mortgage) or making smaller, stable interest-only payments2 (with HELOC For Seniors®) can provide much-needed peace of mind and financial breathing room.
Q: What makes reverse mortgages and HELOC For Seniors® especially valuable for older homeowners?
A: Both options offer practical ways for retirees to put their home equity to work as a financial resource. Whether the goal is funding home improvements to age in place, consolidating high-interest debt, or creating supplemental cash flow, these solutions can be tailored to fit unique needs.
For example, a reverse mortgage line of credit3 can serve as a powerful standby resource, giving a homeowner peace of mind knowing funds are available for emergencies or unexpected costs—without the obligation of making monthly payments.2 On the other hand, HELOC For Seniors® may be better suited for someone who needs to make immediate home modifications but prefers a lower-cost, interest-only payment structure²—without the heavier repayment obligations of a traditional HELOC.
Ultimately, the value lies in flexibility—giving older homeowners choices that match their goals and priorities.
Q: Do you have any advice for older homeowners trying to decide between these home equity solutions to ensure they make the choice that best fits their financial goals?
A: The best option really depends on your unique financial goals. A reverse mortgage may be ideal if your priority is eliminating monthly payments2 while creating a reliable stream of cash flow to support retirement. A traditional HELOC can work well if you are comfortable making regular payments. HELOC For Seniors® sits in the middle, offering access to equity with a lighter repayment obligation.
The key is to align your choice with long-term goals—whether that means preserving cash flow, planning for healthcare needs, or leaving equity in the home for heirs. Because each product has unique benefits and trade-offs, talking with a knowledgeable loan officer from a reputable lender is crucial. At Longbridge, our loan officers are here to walk you through each option, explain costs and obligations, and help you feel confident that the solution you choose truly supports your retirement plan.
Thank you, Larissa, for sharing your valuable insights into these important financial tools!
If you’d like to learn more about these home equity options—or to see which one may be the right fit for your circumstances—reach out to our team at Longbridge Financial today. Together, we’ll help you unlock the Power of Home® with a strategy designed around your goals.