Sale-Leasebacks vs. Reverse Mortgages vs. REFIs

What's the difference between a Sale-Leaseback, a REFI, and a Reverse Mortgage? Here's how they compare.

Home Equity
December 6, 2022
Sale-Leasebacks vs. Reverse Mortgages vs. REFIs
When people first hear of a sale-leaseback, they often reflexively either ask “so is it a reverse mortgage?” or “is it better than refinancing?”
In comparison to both reverse mortgages and REFIs, sale-leasebacks unlock more equity, minimize ongoing costs, remove the burdens of homeownership, and offer many more financial and lifestyle benefits. 

Learn more about Truehold's flexible sale-leaseback

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What’s a Reverse Mortgage? 

In the simplest terms, a reverse mortgage is a complex cash loan that allows homeowners above the age of 62 to access their home equity.

Instead of making monthly payments, homeowners receive money from the lender. When the homeowner moves, dies, or stops paying taxes or insurance, the mortgage comes due. 

And What's a REFI?

A refinance, or REFI, allows homeowners to swap out their existing credit agreement with a new mortgage at a more advantageous rate. This allows homeowners to lower their monthly payments and, in many instances, pay off their mortgage quicker.

REFIs are popular when interest-rates decline, as people who took out mortgages at higher rates use the opportunity to revise the terms of their original loan. 

So, How Do They Stack Up? 

Despite their perceived similarities, a sale-leaseback is an entirely different financial tool that is simpler and more empowering for homeowners. See for yourself below!

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Written by
The Truehold Team
Driving Innovation in Home Equity Solutions
The Truehold Team, a group of professionals in real estate, finance, technology, and senior living, is committed to providing innovative solutions for homeowners to access their equity.
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Truehold's blog is committed to delivering timely and pertinent insights in real estate and finance, purely for educational and informational purposes. Crafted by experts, our content is thoroughly reviewed to guarantee its accuracy and dependability. Although designed to enlighten and engage, our articles are not intended as financial advice and should not be the sole basis for financial decisions. Our stringent editorial practices ensure the integrity of our content, empowering our readers with valuable knowledge.

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