Page Reviewed / Updated - July 29, 2019
To provide a ballpark number, for a $150,000 HELOC, costs may be $1,500 - $2,000. It is generally accepted that for short-term loans, HELOCs are more cost effective than reverse mortgages, especially for loans of between 3-5 years.
Seniors with good credit should qualify for a HELOC interest rate that is near the prime rate. The balance on a HELOC can change daily as borrowers draw funds or make payments. Therefore lenders calculate interest daily.