Data · updated monthly
Reverse mortgage vs HELOC: how homeowners are tapping equity
Reviewed by Paul Knag, founder of Peklava LLC (NMLS ID 1592292) ·August 2026. Source: RateZip first-party home-financing inquiries. Shares only, never counts; months with fewer than 20 inquiries in a category are suppressed.
As of August 2026, among homeowners comparing ways to tap their home equity, about 77% are looking at a reverse mortgage rather than a HELOC (about 23%). Because a federally insured reverse mortgage requires borrowers to be 62 or older, this is a direct read on how older homeowners choose to access equity. Since HELOC became a separately tracked option in Apr 2025, the reverse share has stayed high —between 69% and 96% every month, averaging 83%.
Straight answers
Are more homeowners choosing reverse mortgages or HELOCs to tap home equity?
Among homeowners comparing ways to tap home equity in August 2026, about 77% of the reverse-plus-HELOC inquiries were for a reverse mortgage and about 23% for a HELOC. Since HELOC became a separately tracked option in Apr 2025, the reverse share has run between 69% and 96% each month, averaging 83%.
Why is reverse-mortgage demand a signal about older homeowners specifically?
A federally insured reverse mortgage (HECM) requires the youngest borrower to be at least 62, so reverse-mortgage inquiries come from older homeowners by definition. A HELOC has no age requirement. That is why a high reverse share reflects how homeowners 62 and older, in particular, are choosing to access equity.
What is the difference between a reverse mortgage and a HELOC?
A HELOC is a revolving line of credit secured by your home that you repay with monthly payments; approval depends on income and credit. A reverse mortgage (HECM) lets homeowners 62+ convert equity to cash with no required monthly mortgage payment, and the balance grows over time and is repaid when the last borrower leaves the home. Both are loans secured by your home.
Where does this data come from?
These are shares from RateZip's own home-financing inquiries (Peklava LLC, NMLS ID 1592292), covering 17 months from Apr 2025 through August 2026. We publish shares only, never inquiry counts, and suppress any month with fewer than 20 inquiries in a category.
Thinking about your own equity? Compare the four ways to use it on the home equity options page, or get a free reverse mortgage estimate. A reverse mortgage is a loan that must be repaid.
Methodology: shares are computed from de-identified RateZip inquiry records. HELOC became a separately tracked inquiry type in Apr 2025; earlier months are excluded because HELOC was not yet counted as its own category. Reverse-mortgage inquiries were reclassified out of “refinance” using source and buyer records. Figures describe inquiry interest, not funded loans, and are not a forecast.