For homeowners 62 and older, reverse mortgages allow you to access your home equity without monthly
Popular mortgage loan option
Reverse Mortgage vs HELOC: Best Equity Option for Seniors
Compare reverse mortgages and HELOCs for homeowners 62+ looking to access home equity without selling.
At a Glance
Quick comparison of key requirements
Feature-by-Feature Comparison
See how Reverse Mortgage (HECM) and HELOC stack up
| Feature | Reverse Mortgage (HECM) | HELOC |
|---|---|---|
| Age Requirement | 62+ | None |
| Monthly Payments | None required | Interest-only or P&I |
| Repayment | When you leave the home | Monthly during draw/repayment |
| Income Requirements | Minimal | Must qualify |
| Loan Balance | Grows over time | Decreases with payments |
| Equity Preservation | Decreases over time | Maintained or grows |
Which Loan Is Right for You?
Each loan type has ideal scenarios
The Bottom Line
Reverse mortgages are designed for seniors who want to access equity without monthly payments, ideal for supplementing retirement income. HELOCs require monthly payments but preserve equity and are available at any age. The right choice depends on your age, income, and long-term plans.
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Frequently Asked Questions
Common questions about Reverse Mortgage (HECM) vs HELOC
Frequently Asked Questions
No, you retain ownership and can live in your home as long as you maintain it, pay property taxes, and keep homeowners insurance. The loan becomes due when you permanently leave the home.
This comparison is for informational purposes only and does not constitute financial advice. Rates, terms, and program availability are subject to change without notice and may vary based on creditworthiness, property type, loan amount, and other factors. Contact NMHL for current rates and personalized loan options. NMHL NMLS# 2557591. Equal Housing Lender.