Figure Technologies Inc. has developed a way for baby boomers to convert their home equity into retirement funds. With Figure Home Advantage, their home is sold and leased backed to the seller locking in any gains on the property.

"We're building solutions to help Americans cope with this looming retirement issue. With rising interest rates, cash-out refinancing is an increasingly painful way to meet cash flow needs. Yet for homeowners nearing or already in retirement, home equity may be the most important source of money they have to support retirement," said Wendy Harrington, chief marketing officer at Figure.

Here’s how it works. Figure buys the home and grants the seller a lease that renews annually, leaving the homeowner in charge of how long they stay. Homeowners get their proceeds in one lump sum to bolster their nest egg, cover their expenses or fund what matters most to them. Figure pays and handles property taxes, homeowner's insurance and ongoing maintenance of the home.

In addition, here are additional points to consider:

• Access more cash: In a typical sale-leaseback agreement, 80 to 90 percent of the home's value commonly goes directly to the homeowner. In contrast, reverse mortgages offer 35 to 60 percent; and cash-out refinances, which are costly now that rates have risen.
• Lock in housing gains: With housing prices and home equity at all-time highs in many cities across America, it's a good time to lock in gains.
• Increase stability: Participants know how much money they'll receive upfront and how much they'll pay each month in rent, making it easier to budget and plan for the future.
• Manage the unexpected: Unexpected repairs, rising property taxes, and costly maintenance no longer need to throw retirement plans off track, because Figure takes on those responsibilities and costs.
• Enjoy more flexibility and opportunity: While some baby boomers plan to stay in their current homes for many years, others are actively searching for their next destination, options which Figure makes available to them.