I have a lot of money tied up in my house. What should I do with it?
Home equity can provide options, but accessing it usually means selling, borrowing or changing housing. Compare the costs, taxes, future housing needs and the amount of cash you want to keep available.
Use the future housing budget—not the old working budget
Calculate the full monthly housing cost after retirement, including the mortgage, property taxes, insurance, HOA dues, utilities, maintenance, and expected repairs. Compare that amount with reliable retirement income and the cash reserves that should remain available. A decision that releases equity or lowers maintenance can still create a higher payment if the replacement home, financing, taxes, or HOA costs are greater.
Calculate net equity before making plans
Start with a realistic sale-price range, then subtract the mortgage, other liens, preparation, negotiated credits, commissions, and closing charges. Gross equity is not the same as spendable proceeds. If equity will fund the next home or retirement needs, compare the amount left after the replacement-housing cost.