Video — How Do A Reverse Mortgage And Home Equity Loan Compare?

Reverse mortgages and home equity loans both use equity as collateral. Home equity loans do not have an age requirement; reverse mortgages require the owner be at least 62. HELOCs must be repaid over time - typically 5 or 10 years; Reverse mortgage payback is generally upon sale or borrower death. Rates on the two may be comparable, but borrowers should shop. Reverse mortgage closing costs are generally higher, but typically, these costs can be financed as part of the reverse mortgage loan.