Here are the main difference, and please feel free to email me (below) if you have further questions. I have ended my contract with TOTV until the fall when the snowbirds come back into town.
Here are the pluses of the HECM over the HELOC (home equity line of credit)
Let's say that you qualified for $100,000 on both:
1. The HECM line of credit grows at about 4% per year, the HELOC never grows, but goes down as you use it.
2. The HECM never requires a payment. When you take money out of the HELOC, you start paying it back immediately.
3. The HECM can never be called, and there is no time limit. The HELOC usually has an end date (10 years as an example)
4. If your home depreciates, you can never owe more than the value of your home with a HECM. With a HELOC, you can.