By Steven Hyde, Founder, Hyde Funding · NMLS #391380. Reviewed October 18, 2026. Hyde Funding is a mortgage lender headquartered in San Diego, lending nationwide since 2015.
Short answer: All three turn home equity into cash. A HELOC and a cash-out refinance require monthly payments and income to qualify. A reverse mortgage (for borrowers 62+) requires no monthly mortgage payment, but its balance grows over time. The right choice depends on your income, how long you’ll stay, and how much equity you want to leave.
| Reverse (HECM) | HELOC | Cash-out refi | |
|---|---|---|---|
| Minimum age | 62 | None | None |
| Monthly payment | Not required (taxes/insurance still due) | Yes | Yes |
| Balance over time | Grows | Depends on draws/payments | Shrinks as you pay |
| Existing mortgage | Paid off | Kept | Replaced |
| Line can be frozen or reduced | HECM line can’t be frozen for market reasons | Can be, under Reg Z rules | N/A |
When you have comfortable income, a low first-mortgage rate, and short-term needs. See HELOC hub.
When you want a single fixed payment and to replace a higher-rate mortgage. See cash-out refinance.
When eliminating the monthly mortgage payment matters most, you plan to stay put, and you’re comfortable with less equity later.
It depends on how long you keep it. Reverse mortgages usually have higher upfront costs. Compare Loan Estimates.
The reverse mortgage must be in first position, so existing liens are usually paid off at closing.
Not necessarily. Some retirees use a HECM line of credit as a planned part of their retirement income strategy.
Talk to Steven: (858) 775-1005 · Free consultation · Apply now
Steven Hyde, NMLS #391380 (NMLS Consumer Access). Equal Housing Opportunity. Reverse mortgage borrowers must live in the home as their primary residence, keep paying property taxes, homeowners insurance and HOA dues, and maintain the home, or the loan may become due. The loan balance grows over time. HECMs are insured by FHA. Hyde Funding is not affiliated with HUD, FHA or any government agency. This is general information, not a commitment to lend. Consult a financial or tax advisor.