The median price is $475,873. This is the average home value in Columbia (Zillow, as of June 30, 2026, up 3.2% from the previous year). This number signifies more than just a market price. For retirees who have lived in the area for a long time, it means they have built up significant home equity, raising questions about how to utilize that equity.

In fact, inquiries often arise about whether there are ways to access equity without selling the house when a lump sum is needed for expenses like grandkids' education or travel. One answer is a reverse mortgage. This product allows homeowners aged 62 and older to borrow against their home equity, with the most common form being the HECM (Home Equity Conversion Mortgage) insured by the Federal Housing Administration (FHA).

Unlike a traditional mortgage that requires monthly repayments, the structure is the opposite. Borrowers can receive funds in a lump sum, monthly payments, or a line of credit, and the principal and interest are repaid when the home is sold, the owner passes away, or no longer resides in the home as their primary residence. However, not all equity is available in cash. The percentage that can be accessed is determined by age, interest rates, and home value.

There are three ways to utilize the equity: a lump sum, monthly payments, or a line of credit that can be drawn upon as needed. If a lump sum is needed at a specific time, such as for grandkids' education, a lump sum or line of credit may be more suitable, while monthly payments might be better for ongoing living expenses.

The average effective property tax rate in Maryland is around 1.00% (based on a median home value of $397,700, resulting in an annual property tax of $3,989, according to propertytaxrates.org). It remains true that property taxes and insurance premiums must still be paid by the homeowner even after obtaining a reverse mortgage. This is also why a financial assessment is conducted during the application process to ensure the applicant can continue to manage these payments. Failure to pay them can lead to a risk of default.

Costs must also be considered. When adding origination fees, mortgage insurance (initially around 2% and an annual rate of 0.5%), and closing costs, the initial burden is generally higher than that of a traditional mortgage. However, it has a non-recourse structure, meaning that if the home value falls below the loan balance later, heirs are not required to pay the difference. Still, since equity decreases each year, the assets passed on to children may also diminish, which is something to weigh alongside plans for grandkids' education.

In Maryland, the population aged 65 and older makes up about 16% of the total, with a 3.35% increase projected between 2023 and 2024 (Maryland Matters, reported July 2025). Columbia, located in Howard County, is also home to many households that have lived there for a long time after retirement.

Accessing equity early means that the assets left for heirs will be reduced. Whether to provide financial support for grandkids' education now or leave the house intact is not a question with a clear answer. Discussing this openly with family in advance can help reduce future conflicts.

• Initial costs are higher than a traditional mortgage
• Property taxes and insurance premiums must still be paid by the homeowner
• As equity decreases, inherited assets may also decline
• Mandatory counseling from a HUD-approved counseling agency is required before applying

Many people have the desire to help with grandkids' education now while also wanting to leave the house intact later. There is no perfect way to satisfy both desires. Before deciding how much equity to utilize, it is helpful to first discuss with family what type of assistance they actually need.

Before applying for a HECM, one must undergo mandatory counseling from a HUD-approved counseling agency. This process involves discussing how much equity can be accessed and in what manner, as well as the impact on inheritance plans. Given that there are exaggerated advertisements targeting seniors regarding reverse mortgages, it is wise to make decisions after thorough discussions with family.