Social Security Recipients Tap Home Equity Through 3 Borrowing Options
Updated
Updated · CBS New York · Jun 12
Social Security Recipients Tap Home Equity Through 3 Borrowing Options
3 articles · Updated · CBS New York · Jun 12
Summary
3 main options can turn home equity into cash for retirees whose Social Security checks no longer cover rising healthcare and retirement costs: reverse mortgages, home equity loans and HELOCs.
Reverse mortgages let eligible older homeowners draw cash without monthly loan payments, but interest builds over time and can shrink the equity left for heirs.
Home equity loans provide a lump sum with fixed rates and predictable payments, making them better suited for one-time expenses, though borrowers must qualify on income and risk foreclosure if they fall behind.
HELOCs offer flexible access to funds and charge interest only on what is used, but their variable rates can raise payments over time and complicate budgeting on fixed incomes.
The best fit depends on income, repayment capacity, cash-flow needs and long-term housing plans, making lender comparisons and cost reviews critical before borrowing.