Senior homeowners’ equity climbs to record $14.92 trillion
Homeowners 62 and older gained housing wealth in early 2026, opening several borrowing options tied to home equity.
By Deshawn Carter · Sports Writer
3 min read
Americans 62 and older are sitting on a record $14.92 trillion in housing wealth, according to new figures from the National Reverse Mortgage Lenders Association and RiskSpan.
The group’s quarterly Reverse Mortgage Market Index, released July 20, said senior housing wealth rose in the first quarter of 2026 after two straight quarterly drops. NRMLA attributed the gain to an estimated $314.8 billion increase in senior home values, partly reduced by a $10.5 billion rise in mortgage debt held by seniors.
The jump comes while borrowing costs remain elevated and inflation continues to squeeze household budgets, CBS News reported. For older homeowners, higher home values may give them more room to borrow against equity, though each option carries its own costs and risks.
Reverse mortgages offer access without monthly repayment
A reverse mortgage is available only to homeowners age 62 and older, CBS News reported. Unlike many other borrowing products, it does not require monthly repayment while the borrower continues living in the home.
According to CBS News, a reverse mortgage generally has to be repaid when the homeowner dies or when the home is sold. Borrowers may be able to receive funds as a lump sum or through a revolving line of credit, depending on the product.
The trade-off is direct: money taken through a reverse mortgage reduces home equity. CBS News noted that this may matter for homeowners who plan to leave the property, or its value, to beneficiaries.
Home equity loans provide fixed payments
A home equity loan is another way to convert home value into cash. CBS News reported that these loans currently carry an average interest rate around 7%, making them cheaper than many personal loans and credit cards.
Personal loan rates are in the double digits and average credit card rates are above 20%, according to CBS News. That gap can make a home equity loan appealing for borrowers seeking a larger amount at a lower rate.
The borrower’s home serves as collateral. CBS News warned that homeowners must be able to handle the monthly payments because failure to pay can create foreclosure risk.
One feature may help with budgeting: home equity loans generally come with fixed interest rates, which means predictable payments, CBS News reported.
HELOCs add flexibility, and rate uncertainty
A home equity line of credit, or HELOC, works differently from a home equity loan. CBS News described it as a revolving line of credit with a variable interest rate, rather than a fixed-rate lump sum.
Full payments on a HELOC are typically not required until after the initial draw period, which can last up to 10 years, according to CBS News. That can give borrowers flexibility if they do not need all the money at once.
The same collateral risk applies. CBS News reported that the home backs the borrowing, and homeowners should compare possible monthly costs using today’s rates as well as future rates, since HELOC rates can change monthly.
Borrowers face a balance
The latest NRMLA/RiskSpan data show older homeowners have more housing wealth than ever recorded by the index. That does not mean every homeowner should borrow.
Reverse mortgages, home equity loans and HELOCs each offer access to cash tied to home value, but the terms differ sharply. CBS News advised homeowners to speak directly with lenders, ask questions and avoid borrowing more than they can reasonably manage.
This story draws on original reporting from CBS News.