Turn home equity into your retirement dream fund

Ways to Tap into Home Equity

There are several strategies to access your home equity, each with its own benefits and considerations:

1. **Home Equity Line of Credit (HELOC):** A HELOC allows you to borrow against your home equity up to a certain limit, using your home as collateral. It functions similarly to a credit card, where you can draw funds as needed and pay interest only on the amount borrowed¹.

2. **Reverse Mortgage:** Available to homeowners aged 62 or older, a reverse mortgage enables you to convert part of your home equity into cash, without having to sell your home or make monthly mortgage payments. The loan is repaid when the homeowner sells the home, moves out permanently, or passes away².

3. **Cash-Out Refinance:** This option involves refinancing your existing mortgage for more than you owe and taking the difference in cash. It can be an effective way to access a lump sum of money, though it typically involves higher interest rates and closing costs³.