The biggest difference: a cash-out refinance requires monthly payments and income qualification. A reverse mortgage doesn't have monthly payments. If you're 62+ and want to eliminate mortgage payments while accessing equity, a reverse mortgage may be better.
| Feature | Reverse Mortgage | Cash-Out Refinance |
|---|---|---|
| Monthly Payment | None | Full P&I required |
| Age Requirement | 62+ | 18+ |
| Credit/Income | Financial assessment only | Full DTI underwriting |
| Best For | Seniors wanting no monthly burden | Qualified borrowers wanting lowest rate |