As you enter into your retirement years, you likely have many ideas on how you’ll spend your well-earned free time. One of these ideas may be to travel the open road in a travel trailer or motor home.

While they may seem very similar, there are actually quite a few differences between the two. Here are just a few.

For starters, a typical class C motorhome is likely to have more upfront purchase costs than a travel trailer in similar condition. There are several factors that go into the price difference, such as used v. new, year and upgrades. Additionally, keep in mind that often a vehicle with enough power needs to be purchased in order to tow a travel trailer.

In the long term, motorhomes often cost more to maintain. Some of these costs include parts and regular servicing but, again, different factors come into play when determining maintenance needs for each, such as mileage and how often it’s used.

When it comes to convenience and accessibility, motorhomes typically make the additional expenses worth it. Motorhomes are often easier to navigate in tricky parking and driving situations, and many people are attracted to the comfort that motorhomes provide while traveling to their destination.

If you think that a travel trailer or motorhome is in your future, but there isn’t enough wiggle room in your financial situation to make such a big purchase, a HECM loan may be the right solution for you.

This type of loan allows you to borrow the value of your home without making payments. You keep the title to your home, and the lending bank recoups the money once your home is sold, if property taxes or homeowners insurance goes unpaid, or after you pass away. Typically, there are no limits on what you can use the money for so the funds can be used for big purchases like a trailer or motorhome or travel.

I recently covered HECM loans in-depth on my blog. You can get a full overview of HECM loans here. If you still have questions, don’t hesitate to send them my way. I’m always here to help.

*(1) at the conclusion of a reverse mortgage, the borrower must repay the loan and may have to sell the home or repay the loan from other proceeds; (2) charges will be assessed with the loan, including an origination fee, closing costs, mortgage insurance premiums and servicing fees; (3) the loan balance grows over time and interest is charged on the outstanding balance; (4) the borrower remains responsible for property taxes, hazard insurance and home maintenance, and failure to pay these amounts may result in the loss of the home; and (5) interest on a reverse mortgage is not tax-deductible until the borrower makes partial or full re-payment. This material is not from HUD or FHA and has not been approved by HUD or any government agency.