Steve,

It depends. If they need only a relatively small fixed amount of money, can qualify for a home equity line of credit (HELOC) for that amount and know that they will be able to make the payments for as long as they are going to live in the home, then a HELOC is the best choice. But they need to understand what happens if they cannot make the payment for some reason.

If they're on a lower fixed income, need a significant/unknown/consistent amount of money, or are not sure they can make the payments forever, then they should get a reverse mortgage. That way, they'll have the complete security of having the cash and no payments for as long as they live in the home without risking their home ownership.

Luke

My blog: http://www.activerain.com/blogs/reversemortgagescalifornia