Make The Most Of Your Home In Retirement
For many, a home is filled with the things that matter most. Whether it’s beloved family, most-treasured memories or favorite possessions, their importance makes a house much more than just a place to live
When it comes to homeowners in retirement, or those nearly there, a home also offers something else that shouldn’t be overlooked—equity. And unlike those other things, letting go might be a path worth considering.
Slow and Steady
Whether you’re still living in your first home or you’ve made several moves over the years, owning a home is typically one of your most substantial investments. Figuring out what to do with that investment in retirement can be a challenge. One option is using it to add income to your retirement plans.
A Home Equity Conversion Mortgage (HECM), or reverse mortgage, allows you to draw on the equity over time, delaying any repayments until you leave the property. A HECM that provides monthly payments over many years can be used to strategically supplement your retirement plans without having to give up the home you love.
Of course, if your retirement plans involve minimizing your time at home, it could make sense to cash out your investment. Downsizing to a less expensive home, or relocating to a more affordable area, can transform your equity into actual dollars and give you the financial freedom to start crossing items off your bucket list.
If you’re not quite ready to part ways with your house, renting out all or part of your home, on a long or short-term basis, can offer an alternative route to boosting to your income without giving up the property entirely.
Expect the Unexpected
Those just looking for some peace of mind in retirement shouldn’t forget about their home equity in an emergency. A lump sum HECM or a Home Equity Line of Credit can provide much-needed cash flow in a crisis. Similarly, financial professionals can advise clients on how to use these tools as a backstop for dwindling retirement investments in a down market.
Find out ways to maximize your home’s financial potential in retirement with a call to one of our Loan Origination Specialists at 888-602-6626.