Home Repairs at 70: A Simple Guide to Using Your Savings or Your Home

The dream of a mortgage-free home in retirement often comes with a financial surprise. Once the monthly payment stops, the true cost of ownership doesn't vanish-it simply changes form. For the average retiree, the annual bill for simply keeping a home habitable runs over $9,000 per year. That's money that must come from savings or a fixed income, not from a paycheck.

This creates a direct dilemma. On one side, you have the unavoidable reality of an aging housing stock. The average U.S. home is now 40 years old, meaning roofs, heating systems, and pipes are reaching the end of their useful lives. The result is more frequent and costly repairs. On the other side, the financial pressure is mounting. A recent survey shows that nearly two in five Americans (39%) have postponed or skipped necessary repairs to save money, a sharp increase from just 27% a year earlier. This isn't just about convenience; it's a sign of a budget strain many retirees are facing.

The problem compounds because these costs are hidden in plain sight. They aren't a single bill, but a steady stream of expenses: property taxes, utilities, insurance, lawn care, and the constant need to set aside cash for the next big project. When a retiree's income is fixed, every dollar spent on a roof repair or a new furnace is a dollar not available for groceries or healthcare. The aging housing stock ensures these bills will keep coming, while the rising trend of delaying them only risks turning a manageable repair into a catastrophic, cash-draining emergency later. In short, the "free" home requires a dedicated, ongoing cash flow to maintain, a reality that can quickly erode retirement savings if not planned for.

The Two Main Options: Selling Stocks vs. Tapping Home Equity

When the roof needs fixing or the furnace is on its last legs, you have two primary sources of cash: your retirement portfolio or your home. Each path has distinct mechanics, immediate effects, and long-term consequences that shape your financial future.

The first option is selling stocks. This is a direct withdrawal from your present wealth. The immediate impact is straightforward: you get cash for the repair. But the long-term consequence is a permanent reduction in your portfolio's growth potential. By selling, you lock in any gains you've made, but you also remove that capital from the market's ability to compound over time. For retirees, this is a critical trade-off. A portfolio needs growth to outpace inflation and help stretch savings over a potentially long retirement. Selling stocks to cover a repair means you're using future growth to pay for a present expense, which can accelerate the depletion of your nest egg.

The second option is tapping your home equity. This uses your future wealth-the value you've built in your home-as collateral. There are two common tools. A home equity loan provides a lump sum upfront with a fixed interest rate and predictable monthly payments. A home equity line of credit (HELOC) works more like a revolving credit line, letting you borrow as needed during a draw period, typically with variable rates. Both generally carry lower interest rates than credit cards or personal loans because your home secures the debt. This makes them a potentially cheaper way to access cash for a large repair.

A third, more specialized tool is a reverse mortgage. This converts your home equity into cash without requiring monthly mortgage payments. The funds are typically received as a lump sum, monthly payments, or a line of credit. The trade-off here is clear: you get cash now, but you reduce the equity left in your home. That equity, which could have been passed to heirs or used to fund future needs, is now used to pay for today's repair. The loan balance is not due until you move out, sell the home, or pass away.

The core decision, then, is about timing your wealth. Selling stocks uses present capital to fund a present need, sacrificing future growth. Tapping home equity uses future value (the home's worth) to fund a present need, but it comes with the obligation of debt or a reduction in your estate. For a one-time repair, a home equity loan or HELOC might offer a lower-cost bridge. For a retiree with no heirs and a need for guaranteed cash flow, a reverse mortgage can be a viable option. The choice depends on your risk tolerance, your timeline, and how much of your future you're willing to trade for today's peace of mind.

Critical Questions to Ask Before You Borrow

Before you sign on the dotted line for a home equity loan, HELOC, or reverse mortgage, run through this practical checklist. These questions separate a smart financial move from a costly trap.

1. The Affordability Test: Can You Actually Pay the New Bill? This is the most critical check. A new loan means a new monthly payment, and that payment must come from your fixed retirement income. You must be able to cover it alongside your property taxes, insurance, and other essentials. Remember, you are required to pay your property charges-such as property taxes and homeowners insurance-on time as a borrower. If you can't, the lender may step in, but that eats into your loan proceeds. The bottom line: If the new payment pushes you into a cash crunch, borrowing is not a solution-it's a new problem.

2. The Purpose Test: Is This Repair a Necessity or a Luxury? Not all home projects are created equal. Focus on repairs that improve your safety and ability to stay in your home. Programs like Rebuilding Together exist because they prioritize health and safety fixes like broken steps, faulty wiring, or leaky roofs. If your repair falls into that category, it's a strong candidate for using equity. If it's purely cosmetic-like a new kitchen backsplash or a fresh coat of paint-it's better to save for it or consider a lower-cost alternative. Borrowing for a luxury upgrade is a poor use of your home's value.

3. The Mobility Test: What If You Need to Move? This is especially important for reverse mortgages. These loans are designed for your principal residence. You can only be away for a certain period. If you're away for more than two months but less than six months, you must notify your lender. If you're gone for more than six months for non-medical reasons, the loan becomes due. This rule can severely limit your flexibility. If you're considering a move, a home equity loan or HELOC might be a better fit, as they don't carry the same strict residency requirements. Think about your future plans before locking in a loan with these restrictions.

What to Watch: Programs and Policy Changes

Beyond the loan options, several external factors can tip the scales for a retiree deciding when and how to fund a repair. These aren't just background noise; they are concrete catalysts that create urgency or open new doors.

First, there are free or low-cost programs that directly address the affordability crisis. Rebuilding Together is a national nonprofit that provides home repairs at no cost to eligible homeowners, many of whom are seniors. Their focus is squarely on health and safety-fixing hazards like broken steps, faulty wiring, or leaky roofs. Since volunteers often do the labor, these organizations can stretch limited funds further. This is a lifeline for a repair that is truly necessary, not a luxury. Other avenues include your local Area Agency on Aging, which can refer you to grants or direct funding, and the Section 504 Home Repair program, which offers loans and grants to low-income seniors in rural areas. These programs exist because the problem is widespread, with nearly two in five Americans now skipping repairs to save money.

Second, there's a ticking clock on another potential funding source: tax credits. The evidence points to tax credits expiring December 31 that encourage energy-efficient upgrades. These credits can significantly lower the cost of replacing a furnace or installing new windows. The expiration date creates a clear incentive to act before the year ends. If you've been considering a repair that also qualifies for a credit, delaying it means missing out on a direct discount. This isn't about borrowing; it's about using a government incentive to make a needed upgrade more affordable.

Finally, there's a steady, annual boost to your cash flow. The 2.8 percent cost-of-living adjustment (COLA) for Social Security began with benefits payable in January 2026. For the 75 million Americans who receive these payments, this is a direct, guaranteed increase in income. While it won't cover a major repair on its own, it does provide a little more breathing room each month. It's a small but meaningful addition to a fixed income, potentially making it easier to cover a new loan payment or to save for a repair without dipping into principal.

The bottom line is that timing matters. The combination of a growing repair backlog, a looming tax credit deadline, and a new annual income boost creates a window of opportunity. A retiree should assess their repair needs against these catalysts. Could a health-and-safety fix be covered by a free program? Should an energy upgrade be done before the credit expires? And how does the new COLA payment fit into the budget for a potential loan? By watching these factors, a retiree can make a more strategic, less reactive decision.