Reverse mortgages seem to become more and more popular, although they are a fairly recent development.  A reason that these types of loans aren't more popular is the stigma that these types of mortgages exist in order to "take advantage" of the elderly.  The general public just needs to understand what is included in this type of mortgage.

The reverse mortgage is calculated from the age of the borrower (who has to be at least 62) and the appraised value of the home.  Essentially, if you have more equity in your home, you are eligible for a larger amount.  These types of mortgages are also tax-free and the homeowner doesn't have to qualify for the mortgage based on credit or income.  The lender will be paid back the loan when the property is sold and the title doesn't change hands or sell the property to the lender.  There are some closing costs, a bit higher than an ordinary loan, since the mortgage insurance premium is a requirement for reverse mortgages, but they can be included with a mortgage. 

Although similar in nature, for a cash-out refinance, however, if payments aren’t made, a lender can foreclose and result in the loss of a home.  In addition, these types of loans do not have the age-requirement of a reverse mortgage.  

 Bankapedia's Take

It honestly depends on what you happen to be looking for.  A reverse mortgage is simply an advance on the home's equity + interest (factoring in that you are at least 62 years old), and the more equity that is in your home, then the more equity that you will be eligible to receive in the form of monthly payments or a lump sum.  Likewise, with a cash-out refinance, you receive money from your home, but with the added burden of ensuring that you make payments so that you do not lose your home as a result of foreclosure.  At least with a reverse mortgage, you don't have to fear a worst-case-scenario situation similar to that in a cash-out refinance--delinquent payments or foreclosure.  Be sure to talk to a loan officer or any other mortgage professional so that you can make the best decision for your finances.