Alternatives
Home Equity Line of Credit (HELOC)
What it is:
A revolving credit line based on your home’s equity.
Pros:
- Lower upfront costs
- Flexible access to funds
- Good short-term borrowing tool
- Easy to draw and repay funds
Cons:
- Requires monthly payments
- Payments increase when interest rates rise
- Can be frozen or reduced by the bank
- Difficult to qualify for on fixed income
- Can create risk of foreclosure if payments become challenging
Best for:
Homeowners who need short-term access to funds and can comfortably make monthly payments.
Cash-Out Refinance
What it is:
A new mortgage that replaces your current one with a larger balance; you receive the difference in cash.
Pros:
- Can lower your interest rate (in certain markets)
- Access to a lump sum
- Predictable payment schedule
Cons:
- Requires full monthly mortgage payments for 15–30 years
- Interest rates today are often higher than older mortgages
- Tight qualification requirements
- Can reduce retirement cash flow
Best for:
Homeowners who prefer to keep a traditional mortgage and have stable income to support the payment.
Home Equity Loan (Second Mortgage)
What it is:
A fixed-rate loan secured by your home, repaid through monthly payments.
Pros:
- Predictable fixed payment
- Access to a lump sum
- Lower upfront costs compared to reverse mortgages
Cons:
- Requires monthly payments
- Adds a second mortgage on top of your first
- Harder to qualify for with limited income
- Creates financial pressure in retirement
Best for:
Homeowners who want a one-time lump sum and are comfortable making additional monthly payments.
Selling the Home & Downsizing
What it is:
Selling your current property and purchasing a smaller, more affordable home.
Pros:
- Can eliminate mortgage payments
- Reduces housing expenses
- Frees up home equity
- Simplifies home maintenance for aging
Cons:
- Leaving a beloved home can be emotionally challenging
- Moving costs, taxes, and prep work can be expensive
- The Long Beach housing market may make downsizing costly
- You may lose space, community, and routine
Best for:
Homeowners looking for a fresh start, wanting less upkeep, or planning to move closer to family.
Renting Out Part of the Home
What it is:
Creating rental income by renting a room, ADU, or second unit.
Pros:
- Can create monthly income
- Keeps you in your home
- Flexible structure
Cons:
- Requires management of tenants
- Reduces privacy
- Can create stress or unpredictability
- May require home modifications or permits
Best for:
Extroverted homeowners comfortable with sharing space and managing rental relationships.
Assistance from Family Members
What it is:
Adult children or family members help with monthly expenses or housing costs.
Pros:
- Keeps the home in the family
- Often a short-term solution
- Can reduce financial stress
Cons:
- Can strain relationships
- Not always sustainable long-term
- May create dependency or emotional stress
- Families may disagree about money
Best for:
Families with open communication and the financial ability to support a loved one.
Local & State Assistance Programs
What they are:
Programs supporting seniors with home repairs, property taxes, or in-home care.
Pros:
- May reduce certain expenses
- Often free or low-cost
- Can support aging in place
Cons:
- Income limits may apply
- Funding is limited
- Long waitlists
- Does not address mortgage payments or major equity needs
Best for:
Low-income seniors needing small-scale support.
HECM for Purchase (Reverse Mortgage for Buying a Home)
What it is:
Using a reverse mortgage to purchase a new home with a large down payment — instead of paying all cash.
Pros:
- No monthly mortgage payment
- Allows you to move closer to family
- Lets you buy a more suitable home
- Keeps more cash in your retirement accounts
Cons:
- Requires a substantial down payment
- Closing costs may be higher than traditional purchases
- Must live in the home as your primary residence
Best for:
Seniors who want to move but still want the benefits of a reverse mortgage.
Doing Nothing for Now
What they are:
Choosing not to take any action immediately — simply waiting and reassessing later.
Pros:
- No costs
- No paperwork
- Keeps options open
Cons:
- Cash flow may become tighter
- Home repairs may become more difficult
- Delays can reduce the funds you qualify for (age helps, rising rates hurt)
Best for:
Homeowners who feel financially stable right now and want time to think.