Reviewed by Dan Frio, NMLS #246527, 38 years in mortgages · October 15, 2026
There are three common ways to get cash from your home: a reverse mortgage, a home equity line of credit (HELOC), and a cash-out refinance. Each one uses your home equity, but they work very differently.
Seeing them side by side makes the choice easier.
Here is how the three compare on the things that matter most.
Monthly payments are the big one. A HELOC and a cash-out refinance both need a monthly payment. A reverse mortgage does not, as long as you live in the home and keep up taxes, insurance, and upkeep.
Safety is the second. A HELOC can be frozen or reduced by the lender. A HECM line of credit cannot, as long as the loan is in good standing. A HECM is also non-recourse, so you never owe more than the home is worth.
Cost is the third. A reverse mortgage has higher upfront costs. If you only need money for a short time, that matters. See reverse mortgage costs for the full list.
These are simple examples, not advice. Your situation is unique.
A reverse mortgage might fit if you are 62 or older, plan to stay in your home for many years, and want to lower your monthly bills. It may also fit if you worry a lender could freeze a credit line just when you need it.
A HELOC might fit if you have steady income, can easily make a monthly payment, and need a smaller amount for a short time. Upfront costs are often lower.
A cash-out refinance might fit if you are comfortable with a new monthly payment, want one fixed loan, and plan to pay it down over time.
A reverse mortgage is not right for everyone. Read the honest downsides. Then run a free estimate to see your numbers, and talk with Dan about the options side by side.
A HECM requires no monthly mortgage payment, its line of credit cannot be frozen while the loan is in good standing, and it is non-recourse. A HELOC requires monthly payments, can be frozen or reduced, and you are responsible for any shortfall.
A HELOC usually has the lowest upfront cost. A cash-out refinance is moderate. A reverse mortgage is higher because of FHA insurance, origination, and closing costs.
No. Those are usually available at 18 and older. An FHA HECM requires the youngest borrower to be 62 or older.
Income and credit are reviewed in a financial assessment, but there is no payment qualification like a HELOC or cash-out refinance.