Compare Reverse Mortgages to Refinance and Home Equity Loans

Loan Attributes	Refinance Mortgage	Home Equity Loan or Line	Reverse mortgage
Home Ownership	Yes	Yes	Yes	A common misconception. The bank does not own your home. You retain title.
Income Qualification	Yes	Yes	No	Loan is based on market value of home. No income is needed.
Credit Verification	Yes	Yes	No	Age and property are the only lending criteria. Credit, income, and negotiating skills are not factors.
Monthly Loan Repayments	Yes	Yes	No	Reverse mortgages are not due for repayment until the property is no longer occupied and you can never owe more than the value of your home.
Pre-Payment Penalty	Yes	Yes	No	You, or your estate repay the reverse loan in one payment, when the property is no longer occupied. Reverses offer you a far longer period than forward mortgages to settle your estate, usually 6 months.
Home Loss	Possibly	Possibly	No	With other loans foreclosure is a risk, but not with a reverse mortgage. Your home cannot be taken from you, if you pay your property taxes and you live in it at least 6 months a year. No matter what. It's the law.
Property Appraisal	Yes	Not typically	Yes	Appraisal is key since you're borrowing against your property's market value.
Time to Cash	20 to 45 days	14 to 20 days	40 to 60 days