Unless the rules have changed recently I did not think you could obtain a reverse mortgage on a second/vacation home. I thought one of the requirements is that you continue to use the home as your primary home.
A HELOC is a revolving line of credit. If she needs all of the money at once she should just take a cash out refinance with a 30 year fixed interest rate and no points. If she only wants to have the money available to use in case she needs for any reason a HELOC may not be a bad idea as she will only pay on what whe borrows.
If you want to consider a cash out refiance TJ at Sun Home Loans is the best in the Wildwood area. Feel free to e mail me for his contact info. Also if/when mom is ready to sell I would like the opportunity to discuss my seller's services. As a full time agent involved in various areas of real estate for over 30 years I am one of the most qualified agents in South Jersey that you can work with. I work 7 days/evenings a week and my service is second to none. As a life long resident of Cape May County I know the area as well as anyone and better then most.
Let me know if you would like TJ's info and if I can be of further service to you. Thank you!
Is ~60% your DTI before you refinance? The DTI which counts is your DTI with the new proposed mortgage, so if you are refinancing a $1,372/mo payment then hopefully your payment is going down, which would lower your DTI below the 58.13% which the numbers you laid out calculate out to.
It also includes your consumer debt too, car loans, student loans, credit cards, etc... and your property taxes & homeowners insurance too, if not already included in your mortgage payment.... more