Is it better to use home equity or retirement to temporarily make ends meet?

We are married in our 40's with a baby. I am stay at home mom and my husband was laid off. We have two homes and no debt aside from mortgages. Should we use our home equity or cash in retirement to make ends meet until we have another income?

Do not cash in retirement, unless it's in a Roth IRA, and then, only take out what you contributed. Otherwise you will have to pay taxes PLUS a 10% penalty on it. After it's all said and done, you're only going to get around 55 cents on the dollar for the money you take out of your retirement.

Unless you already have an established home equity line of credit, your family income situation may not allow you to acquire a line of credit. And given the current real estate market, your mortgages may already have you "upside-down" - you owe more than the house is worth - on the house, which will also prevent you from being approved for a line of credit.

If your only choice is using the retirement, you will pay a penalty and owe taxes if not paid back on time, and that will make your financial situation even worse.

Better to think about hubby getting some, any, work, or you going to work, or both.

Sell the one home to get rid of the mortgage.