Reverse Mortgage vs. HELOC vs. Home Equity Loan
Compare the monthly payment impact of three common ways to access home equity for the same amount of cash.
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All three tap home equity but affect your budget differently. A home equity loan and HELOC require monthly repayments and income qualification; a reverse mortgage requires no monthly payment, trading cash flow for a growing balance.
The right choice depends on age, income, how long you’ll stay, and whether cash flow or equity matters more.
Frequently asked questions
Main difference vs. a HELOC?
A HELOC requires payments and income qualification and can be frozen; a reverse mortgage requires no payment and its growing line can’t be frozen while in good standing.
Which is cheapest overall?
It varies — compare total cost over the time you expect to stay in the home.
Can I qualify with limited income?
Reverse mortgages have lighter income requirements, though a financial assessment applies.
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Open calculator →What this calculates
Compares estimated costs, payments and remaining equity across three common options.
Assumptions & methodology
- Rates and fees are illustrative defaults.
- Results are estimates based on the figures you enter and simplified assumptions.
- Taxes, fees, rates and individual circumstances can change real outcomes.
Important: These tools provide educational estimates only. They are not a loan offer, pre-approval, or financial advice, and results never mean you are approved for any product. Eligibility and terms are determined by a lender after a full application. Consider speaking with a HUD-approved counselor or financial professional.
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