Independent broker · Licensed for all six home equity products
NMLS #312623 · CA DRE #01886690
An HEI, HELOC, second mortgage, reverse mortgage, and cash-out refinance each fit a different situation. A plain comparison on payment, qualification, and rate.
There is no single best way to tap your home equity. There is only the option that fits your goal, your budget, and your timeline. Here is how the main tools compare on the three questions that matter most.
| Feature | HEI | HELOC | Cash-out refinance | Reverse mortgage |
|---|---|---|---|---|
| Monthly payment | None | Yes, interest at first | Yes, principal and interest | None (age 62+) |
| Income qualification | Not required | Required | Required | Not required |
| Affects mortgage rate | No | No | Yes, resets the rate | Pays it off |
| Age requirement | None | None | None | 62+ only |
| Best for | Equity-rich, payment-cautious | Flexible access, can service debt | Rate reset acceptable | Older owners, heirs not a priority |
A second mortgage, or fixed second, sits near the HELOC column: it is a loan against your equity with a fixed rate and a monthly payment, leaving your first mortgage and its rate in place.
There is also a sixth option that often gets overlooked: a non-QM loan. It qualifies you on bank statements or assets instead of traditional W-2 income, so it can be the answer for a self-employed owner who can comfortably carry a payment but cannot easily document income for a HELOC or refinance. The rate is usually higher than a conventional loan, which is the trade for that flexibility.
Start with what you are protecting. If you have a low first-mortgage rate and do not want to lose it, a cash-out refinance is usually off the table, which points you toward an HEI, a HELOC, a second mortgage, or a reverse mortgage.
Then look at cash flow. If you cannot comfortably take on another monthly payment, an HEI or a reverse mortgage moves to the front, because neither adds one.
Finally, consider qualification. If your income is hard to document, the products that do not test income, an HEI and a reverse mortgage, become far more practical than a HELOC or a refinance.
Each of these is a different product from a different kind of provider, and the terms vary a lot between them. The point of working with an independent broker is that you are not steered toward whichever product one company happens to sell. The options get compared side by side, and the one that genuinely fits is the one that gets placed. If that turns out to be a HELOC instead of an HEI, you should hear that, not a sales pitch.
An HEI, a HELOC, and a reverse mortgage all leave your first mortgage in place. A cash-out refinance replaces your mortgage and resets the rate.
A HELOC and a cash-out refinance generally require income qualification. An HEI and a reverse mortgage typically do not.
Sources are cited inline where each figure appears. We re-check the numbers when incentive amounts, regulations, or product availability change.
Last updated Jun 28, 2026
A reverse mortgage and a HELOC both leave your first mortgage in place, but they suit very different retirees. How they compare on payment, qualification, and age.
A cash-out refinance replaces your whole mortgage and resets the rate. A fixed second mortgage leaves the first alone. When you hold a low rate, that difference decides it.
Traditional HELOCs and refinances test income the way lenders like to see it. For self-employed owners, non-QM loans and an HEI open a path that W-2 documentation does not.
Book a no-obligation 15-minute call with JJ. He compares an HEI, HELOC, second mortgage, reverse, and cash-out refinance, then places the one that actually fits your situation.
Occasional notes on rates, programs, and timing. Unsubscribe anytime.
By subscribing you agree to our Privacy Policy. Unsubscribe any time.
Homeport Equity
I can help you find what you're looking for.
I'm an AI assistant, not financial advice. For a real recommendation, talk to JJ.