The popularity of home equity loans has increased within the past five years. The main reasons that so many people borrow against their home's equity include debt, debt consolidation, and home improvement- although there are many other reasons that a person might do so.

Within the last fifteen years, there has been a new addition to the home equity market, which is the reverse mortgage. A reverse mortgages allows you to borrow against your home's equity. Unlike home equity loans or lines of credit, however, you do not have to make payments to pay it back. When you repay is when you die, move or sell your home. You must be 62 years old to qualify, and a steady flow of income is not necessary.

Some of the main reasons that you may want to choose a reverse mortgage over a traditional home equity loan include:

- You can decide to have a monthly payout for the loan, a lump sum, or credit line.
- You do not have to pay off the loan until you move, die or sell your home.