Most homeowners over 50 are sitting on six figures they’ll never use

Your home is probably worth more than it was five years ago. Maybe a lot more. Nationally, home values climbed over 45% between 2020 and 2025, packing more than a decade of typical growth into five years.

But unless you’re planning to sell, that number doesn’t help you pay for a new roof, cover a medical bill, or consolidate the credit card balance that’s been growing since last year.

What most homeowners don’t realize: you don’t have to sell your home to use the equity you’ve built. There are two straightforward ways to turn that equity into cash, and the right one depends on your age. If you’re 62 or older, Longbridge Financial offers reverse mortgages with no required monthly payments. If you’re under 62, Figure can get you a home equity line of credit in as few as 5 days, entirely online.

How homeowners are accessing their equity

Four main options exist for pulling cash from your home. Two of them are a good fit for most people, depending on where you are in life.

Home equity line of credit (HELOC): A revolving credit line secured by your home. You borrow what you need, pay interest only on what you use, and can draw again as you pay down the balance. Typically requires income verification and good credit. Best for homeowners under 62 who want flexibility and speed.

Reverse mortgage (HECM): A federally insured loan for homeowners 62 and older. Instead of making monthly payments to a lender, the lender pays you, either as a lump sum, monthly payments, or a line of credit. You keep living in your home. The loan is repaid when you sell, move, or pass away. No monthly mortgage payments required.

Cash-out refinance: Replaces your existing mortgage with a larger one and gives you the difference in cash. Can make sense if rates drop below your current mortgage rate, but with rates higher than most existing mortgages right now, you’d likely trade a low rate for a higher one.

Home equity loan: A fixed lump sum with fixed payments, similar to a second mortgage. Less flexible than a HELOC and typically slower to close.

For most homeowners over 50, the choice comes down to the first two: a HELOC if you’re under 62, or a reverse mortgage if you’re 62 and up.

If you’re 62 or older, reverse mortgages have changed

If your first reaction to “reverse mortgage” is skepticism, that’s fair. A decade ago, the industry had real problems: high fees, confusing terms, and some lenders who took advantage of seniors who didn’t fully understand the product.

That era is over. Today’s reverse mortgages (called HECMs) are insured by the FHA, regulated by HUD, and require independent counseling before you can close. Over 1.3 million American homeowners have used them since the program began. The protections are real.

How it works: you convert a portion of your home equity into cash. You choose how to receive it, whether as a lump sum, monthly payments, or a line of credit you draw from as needed. You continue living in your home and you make no monthly mortgage payments. The loan balance is repaid when you sell, move permanently, or pass away. Your heirs inherit any remaining equity above the loan balance.

Who it’s right for: homeowners 62 or older who want to supplement retirement income, cover medical costs, pay off an existing mortgage, or have a cash reserve without selling. Longbridge Financial is one of the top-rated HECM lenders in the country, with BBB accreditation and strong marks from ConsumersAdvocate.org for their online tools and experience.

If you’re under 62, there’s a faster option

For homeowners who aren’t yet 62, a home equity line of credit is the most direct path to accessing equity. The problem with traditional HELOCs is the process: most banks take 30 to 60 days, require stacks of paperwork, and charge variable rates that can climb without warning.

Figure built a different model. Their entire process runs online: a 5-minute application, instant property valuation (no appraisal appointment), and funding in as few as 5 days. The rate is fixed, which is unusual for a HELOC. You can borrow up to 85% of your home’s value minus what you owe, and re-borrow as you pay down the balance.

Figure is the #1 non-bank HELOC lender in the country, with a 4.8 out of 5 rating across more than 4,300 reviews. The reviews consistently mention two things: how fast the process is and how much simpler it is compared to going through a bank.