Senior home wealth just hit a record high. Here's how to borrow from it now.
Senior home wealth has hit a record high, with homeowners aged 62 and older having $14.92 trillion in accumulated home equity. This wealth can be borrowed from using various methods, including reverse mortgages, home equity loans, and home equity lines of credit.
Intelligence analysis by Llama
Senior homeowners can borrow from their accumulated home equity using reverse mortgages, home equity loans, and home equity lines of credit. These methods allow homeowners to tap into their home's value without having to make monthly payments.
Imagine you own a house and it's worth a lot of money. You can borrow some of that money without having to pay it back right away. This is called a reverse mortgage. It's like taking out a loan, but you don't have to make payments until you sell the house or move out. There are other ways to borrow money too, like taking out a home equity loan or a home equity line of credit. These options can help you tap into the value of your house without having to sell it.
Analysis
A Record High in Senior Home Wealth
The latest quarterly NRMLA/RiskSpan Reverse Mortgage Market Index revealed that housing wealth among homeowners aged 62 and older rose in Q1 2026 to a record $14.92 trillion. This increase was due to an estimated $314.8 billion (1.8%) rise in senior home values, which was partially offset by a $10.5 billion (0.4%) increase in senior-held mortgage debt.
Three Ways to Borrow from Senior Home Equity
There are three primary ways in which senior homeowners can borrow from their accumulated home equity. The first is through a reverse mortgage, which is only available to homeowners aged 62 and older. This type of loan allows homeowners to tap into their home's value without having to make monthly payments. However, homeowners should be aware that a reverse mortgage will reduce the value of their home, which may be a concern if they plan to leave it to beneficiaries.
The second way to borrow from senior home equity is through a home equity loan. This type of loan comes with an average interest rate around 7% now, making it one of the cheaper ways to borrow money overall. However, homeowners should be aware that their home will function as collateral in this exchange, so they will need to comfortably afford the monthly payments to avoid foreclosure risk.
The third way to borrow from senior home equity is through a home equity line of credit (HELOC). A HELOC functions much the same way a home equity loan does, albeit with a variable interest rate and as a revolving line of credit. However, homeowners should be aware that their home will also serve as collateral in this exchange, so they will need to calculate their potential monthly costs both against today's average rates and what they could be in the future as HELOC rates change each month for homeowners.
The Bottom Line
With senior home wealth at a new record high, homeowners may want to seriously evaluate the viable ways they can tap into that equity right now. Reverse mortgages, home equity loans, and HELOCs all offer accessible and viable ways to leverage this equity, though they will each come with unique pros and cons that will need to be understood in advance.
Key points
- Senior home wealth has hit a record high, with homeowners aged 62 and older having $14.92 trillion in accumulated home equity.
- There are three primary ways to borrow from senior home equity: reverse mortgages, home equity loans, and home equity lines of credit.
- Reverse mortgages allow homeowners to tap into their home's value without having to make monthly payments, but may reduce the value of their home.
- Home equity loans come with an average interest rate around 7% now, making them one of the cheaper ways to borrow money overall.
- HELOCs function much the same way home equity loans do, but with a variable interest rate and as a revolving line of credit.
If senior homeowners can tap into their accumulated home equity using reverse mortgages, home equity loans, and HELOCs, they may be able to access a large sum of money at a reasonable cost. This could help them cover expenses, pay off debt, or even invest in other assets.
However, homeowners should be aware that borrowing from their home equity can come with risks, such as reducing the value of their home or facing foreclosure risk. They should carefully consider their options and weigh the pros and cons before making a decision.
