There are many ways you can use your home equity for retirement. Consider the following:
Up-fit Your Forever Home: Home equity funds can be used to update your existing home so that you may remain in it longer. You can add wheel chair ramps, widen doorways and make your home handicap accessible. What about a master suite on the main level?
Reduce The Cost of Your Home: You can reinforce your insulation, replace doors and windows and install a new heat/air system. You can swap old appliances with energy saving models to reduce your monthly utility bills. Doing so may keep you on budget with a lower fixed income.
Pay For Long Term Care: Depending on your needs, a mortgage may finance your long term care. Funds from a Home Equity Line of Credit can be accessed as needed. This can help you cover in-home care costs such as a hospital bed and nursing visits.
Debt Consolidation: Paying off as many bills as possible can make it easier to stay within your budget based on a reduced income. Satisfying a low balance mortgage that carries a significant monthly payment can improve your cash flow and increase disposable income.
Cover The Costs of Long Term Care Insurance: It may make sense for insurance premiums to be paid with proceeds from a home equity loan. There are no limits on the number of draws you can take.
Alternate Income Provider: Another option is to purchase a lifetime annuity with mortgage proceeds. This provides a guaranteed income source through retirement. Starting a second career is becoming more common during retirement. Use your HELOC for your start-up.
Have questions? Schedule a Mortgage Analysis or give our experts a call at 800/442-7792 to learn more.
There are many mortgage options for retirement like A Home Equity Line of Credit (HELOC), a Home Equity Second Mortgage or a Cash-Out Refinance. Learn More
*Consult your tax advisor or financial planner for information regarding tax benefits, Medicaid and Medicare qualifications, etc.