# Could My Home Equity Help Me Have a Better Retirement?

By Anthony J Byrnes (@anthonyjbyrnes) · Published 2026-10-22

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When most of us picture retirement planning, we picture a stack of statements: the 401(k), the IRA, the Social Security estimate, maybe a pension. Rarely does anyone pull out the deed to the house and add it to the pile. Yet for many families approaching retirement, the home is the single largest asset they own. That raises a question worth sitting with: if your home holds so much of your wealth, shouldn't it at least be part of the conversation about how you'll live in retirement, even if you never choose to use it?

## The couple who planned everything but the house

Picture this. A financially careful couple in their late 60s has done the work most of us hope to do. They've built a meaningful nest egg, paid down most of their mortgage, and spent years with their advisor mapping out investment income and monthly withdrawals. As they near retirement, their plan looks solid. But something nags at them. Their home — paid for, substantial, full of decades of memories — never once appears on the balance sheet.

That's the moment I keep seeing in my work as a reverse mortgage specialist. Not because these homeowners are unprepared. They are remarkably prepared. It's because housing wealth gets treated as a place to live rather than a resource to think about. When an entire asset sits outside the planning conversation, it can't do its job, whether that job is cash flow, flexibility, or simply peace of mind.

![retirement planning couple at kitchen table with financial documents](https://convex.voce.com/api/storage/a2cf2839-0e34-4285-b679-92effbda4cf3)

## Why home equity gets left out of the plan

There's a practical reason the house rarely makes the spreadsheet: it doesn't produce income the way an investment account does. You can't withdraw from it like a 401(k), so planners naturally focus on the assets that move the monthly numbers.

There's also a psychological reason, one that has little to do with numbers. For people who have spent decades paying off a mortgage, the home can feel like a finish line rather than a balance-sheet item, an achievement to protect, not a resource to weigh. That framing is understandable, and it's exactly why the house so rarely gets asked what it could do for the plan. Retirement planning has also been built around income-producing assets for so long that the home simply doesn't appear on the traditional checklist, even though it often outweighs the other assets on it.

But that assumption deserves a second look. Housing wealth can create options around cash flow, flexibility, and how you handle unexpected expenses. Retirement researchers have studied this closely. Dr. [Wade Pfau](https://milkeninstitute.org/events/future-finance-2026/speakers/wade-pfau), a professor of practice at the American College of Financial Services and founder of the educational site Retirement Researcher, has spent years examining how home equity fits into a retirement income strategy, working alongside Barry and Stephen Sacks to explore the tradeoffs of tapping housing wealth.

I want to be careful here. This research is model-based. It looks at possibilities across different scenarios, not guarantees for any one household. It doesn't say everyone should borrow against the house, and it promises nothing. What it suggests is that the home deserves a seat at the table when you're weighing your options.

## Several ways to think about the house

If the idea interests you, there's no single path, and that's the point. You might keep the home exactly as it is and never borrow against it. You might downsize and free up cash. You might use a traditional [home equity loan or line of credit](https://crosscountrymortgage.com/mortgage/loans/heloc-home-equity-line-of-credit?utm_source=voce.com&utm_medium=referral&utm_campaign=voce_lo_pilot_2026) if you need a lump sum and prefer a familiar structure. If you're planning to buy a new home, a [HECM for Purchase](https://crosscountrymortgage.com/mortgage/loans/reverse-mortgages/hecm-jumbo-reverse-purchase?utm_source=voce.com&utm_medium=referral&utm_campaign=voce_lo_pilot_2026) can help you finance a new principal residence while preserving more of your liquid savings, though it generally requires a substantial borrower monetary investment and involves upfront costs rather than minimizing them. And if you're an eligible homeowner age 62 or older, you might evaluate a [reverse mortgage](https://crosscountrymortgage.com/mortgage/loans/reverse-mortgages?utm_source=voce.com&utm_medium=referral&utm_campaign=voce_lo_pilot_2026) as a planning tool. The value isn't in choosing a product. It's in seeing that you have a choice at all.

## The HECM line of credit, explained fairly

A Home Equity Conversion Mortgage (HECM), the reverse mortgage insured by the Federal Housing Administration and part of HUD, lets eligible homeowners aged 62 and older access a variable-rate line of credit drawn against home equity as needed rather than a single lump sum. No monthly principal and interest payments are required while loan obligations are met. The unused balance can grow over time, but that growth reflects borrowing capacity, not interest earned or an increase in home equity.

That line of credit can be a flexible resource. You might draw on it to supplement your monthly retirement income, cover an unexpected medical bill, or potentially delay withdrawing from your investments during a down market. Because a [HECM](https://crosscountrymortgage.com/mortgage/loans/reverse-mortgages?utm_source=voce.com&utm_medium=referral&utm_campaign=voce_lo_pilot_2026) does not require monthly principal and interest payments while loan obligations are met, an existing mortgage lien on the home must be satisfied at closing, using proceeds from the transaction or other funds. Borrowers remain responsible for property taxes, homeowners insurance, property maintenance, occupancy, and other applicable obligations.

One feature planners often point to is the growth potential built into the HECM line of credit. For an unused portion of the line, the available balance can grow over time, which reflects an increase in available borrowing capacity rather than earned interest, investment returns, or an increase in home equity. Interest and applicable charges accrue on outstanding loan balances. That growth is not a promise of any particular amount; it depends on interest rates and how the line is used, but it's part of why some advisors frame this as a standby reserve rather than a spending account.

Let's be equally clear about the costs. A HECM is a loan. It carries upfront fees, ongoing mortgage insurance, and accruing interest that grows the balance over time, which can reduce the equity you leave behind. Borrowers must complete a financial assessment and attend HUD-approved counseling before the loan can proceed. And it's simply not right for everyone — especially homeowners who plan to move soon, want to leave the home debt-free to heirs, or wouldn't have enough equity to justify the costs.

#### Get to know your mortgage professional

Visit Anthony Byrnes' author profile on Voce to read more about how home equity fits a retirement plan.

[Learn more about Anthony Byrnes](https://crosscountrymortgage.com/wayne-pa-3944/anthony-byrnes/?utm_source=voce.com&utm_medium=referral&utm_campaign=voce_lo_pilot_2026)

## The real payoff was the discovery

Let's return to that couple. In the end, they may decide not to take any action at all. They might keep the house exactly as it is, downsize, or choose a traditional line of credit. That's a perfectly good outcome. The benefit of their conversation wasn't selecting a loan. It was realizing that their entire household balance sheet, including the home, was finally on the table. They went from wondering whether their investments would be enough to understanding they had more options than they'd ever counted.

There is real value in simply knowing the option exists, even if it's never used. A standby asset can offer a sense of flexibility, though it is not a guarantee of protection or of improved financial outcomes. Homeowners who have looked at their full balance sheet sometimes describe the relief differently than homeowners who haven't: not as excitement about a product, but as a clearer view of the options available if circumstances change. Retirement and investment decisions should be reviewed with a qualified financial advisor.

That, more than any product, is the goal of retirement planning. An informed strategy looks at the full picture, including savings, investments, Social Security, and housing wealth alike, and decides deliberately what role each should play. The house is part of your wealth. The question worth asking is whether you want it to be part of your plan.

I'm Anthony Byrnes, a reverse mortgage specialist with CrossCountry Mortgage (NMLS 1336476). If you're approaching retirement, I'd encourage you to have this conversation with your financial advisor and with a knowledgeable mortgage professional. There's no pressure and no single right answer, just the chance to see your options clearly. So here's my question for you: when you plan for retirement, does your home get a place on the balance sheet, or is it waiting for you to notice it?

#### Curious how home equity fits your plan?

Talk through your options with a knowledgeable mortgage professional before you decide.

[Start the conversation](https://crosscountrymortgage.com/wayne-pa-3944/anthony-byrnes/?utm_source=voce.com&utm_medium=referral&utm_campaign=voce_lo_pilot_2026)

_All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. CrossCountry Mortgage, LLC (“CrossCountry”) does not guarantee the quality, accuracy, completeness, or timeliness of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error free. Some information in the publication may have been provided by third parties and has not necessarily been verified by CrossCountry. CrossCountry its affiliates and subsidiaries do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort, or other tortious action._

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_Reverse mortgages are generally available to borrowers age 62 or older. Available to borrowers as young as 55 in select states and programs only. Higher minimum age requirements may apply. Home Equity Conversion Mortgages (HECMs), including HECMs for Purchase, require borrowers to be at least 62 years old. A HECM for Purchase allows eligible borrowers to purchase a new principal residence using reverse mortgage proceeds and requires a borrower monetary investment. Borrowers must complete required counseling, obtain a certificate of completion, and meet applicable financial assessment, equity, and program requirements. No monthly principal and interest payments are required while loan obligations are met; however, borrowers remain responsible for property taxes, homeowners insurance, property maintenance, and other applicable obligations. Failure to meet these obligations may result in foreclosure. The loan becomes due and payable upon certain events, including sale of the property, death of the last surviving borrower, or failure to meet loan obligations, subject to applicable requirements. This material is not provided by or approved by HUD, FHA, or any other government agency._