Both convert home equity into usable funds, but differ significantly in repayment structure.
Reverse mortgage
No required monthly payments; the loan is repaid when you move out permanently or pass away, typically through the home's sale.
Home equity loan or line of credit
Requires ongoing monthly payments and qualifying income, but generally has lower fees than a reverse mortgage.
If you need income without a monthly payment obligation, a reverse mortgage may fit better; if you can manage payments and want lower costs, a home equity loan may be preferable.
This article is general information, not financial or legal advice. Rules, costs, and program details vary and change over time — confirm current specifics with a licensed financial advisor or elder law attorney before making a decision.