The Million Dollar Question: Reverse Mortgages vs. Equity Sharing Agreements vs. HELOCs

3 Ways to Tap Into Your Home Equity Without Mortgage Payments

As a homeowner, you have three main options for borrowing against your home equity without creating a new monthly mortgage payment. These are a reverse mortgage, an equity sharing agreement, and a HELOC. Here are the key things to consider with each option.

Reverse Mortgage

With a reverse mortgage, you keep the title to your home and can live in your home as long as you like. The loan is not repaid until you die, sell the home, or permanently move out of the home.

Equity Sharing Agreement

With an equity sharing agreement, you sell a portion of your home to an investor in exchange for a lump sum of cash or a line of credit. The investor then becomes a partial owner of your home and is entitled to a portion of the equity when the property is sold.


A HELOC is a home equity line of credit. Like a credit card, you can borrow against your available credit limit and make monthly payments as you go. However, unlike a credit card, the interest rate on a HELOC is usually variable and tied to the prime rate.

Get Started