Home equity options, in plain language.

A reverse mortgage lets homeowners 55+ borrow against home equity without making monthly payments. The loan is repaid when you sell the home, move out, or pass away.

How much: Typically 20%–55% of your home's value, depending on age (older = more accessible).

The catch: Interest compounds. On a $300K reverse mortgage at 6.5%, the balance roughly doubles by year 12.

Best for: Homeowners who want to stay put, don't need income qualification, and are comfortable with a smaller estate.

Sell your current home, buy something smaller or in a less-expensive area, and keep the difference as cash. No borrowing, no interest.

How much: Depends on the price gap. A $1.2M home downsized to a $700K condo typically frees ~$400K after transaction costs.

The catch: Moving costs $40–60K when you count realtor fees, legal, property transfer tax, and the move itself. And leaving a long-time home is often emotionally significant.

Best for: Homeowners open to a new location or lifestyle, and those who want to preserve the most for their estate.

A revolving line of credit secured against your home. You only pay interest on what you actually draw, and you can pay it back at your own pace.

How much: Typically up to 65% of home value combined with any existing mortgage.

The catch: Requires income qualification (harder in retirement). Monthly interest payments are required. Rate is variable.

Best for: Homeowners with retirement income, occasional lump-sum needs, and a shorter horizon.