Borrower Guides
Understanding Home Equity Options
Cash-out, HELOC concepts, and reverse mortgage basics for 62+ homeowners.
6 min read · Educational only
Equity in Plain Language
Equity is the difference between your home’s value and what you still owe. It can grow as you pay down the loan and as values change in your market—both can move up or down over time.
Cash-Out and Lines of Credit
Cash-out refinancing replaces your mortgage with a new loan that includes an additional draw of equity. A home equity line of credit (HELOC) is a separate credit line secured by the home. Fees, rates, and repayment rules differ—compare total cost, not just a monthly teaser.
Reverse Mortgages (62+)
FHA-insured reverse mortgages are designed for older homeowners and have specific occupancy, counseling, and disclosure requirements. They are not right for everyone; licensed specialists can walk through eligibility and impacts on heirs and estate plans.
Educational information only - not financial or legal advice. Speak with a Gold Star loan officer for guidance specific to your situation.