Three Ways Owning a Home Contributes to Your Financial Health
For most of us, the dream of home ownership is important for reasons that aren’t easy to quantify with numbers. After all, a home of our own gives us a place to build a life, and the ability to mold it to our specific needs and family. But that doesn’t mean we don’t hope that the decision will be a sound investment for the future; putting money into a home can create a financial safety net for responsible homeowners that’s simply not available to renters.
Your home equity can help cover unexpected and emergency costs.
Sometimes, life throws a curveball. Even the most steadfast budgeters and savers can find themselves in situations they aren’t prepared for financially. For example, if you or a spouse loses a job unexpectedly, or if a family member needs medical assistance beyond what insurance will cover, tapping into your home’s equity with a home equity loan can offer a life raft in the form of a lump sum of cash. Similarly, a home equity line of credit can offer access to a line of credit related directly to your home equity that you can access to make purchases.
When it’s time to sell, a well-maintained house can be a good investment.
There’s no way to know how the market (or your neighborhood) will change over your tenure in a home. After all, when you buy a house, you sometimes compromise for an area you like at a price you can afford. That said, maintaining your home and being invested in the community are within your control, and both can help keep your property value steady. Keeping abreast of housing trends in the area and making renovations to modernize could help your quality of life and your return on investment if you decide to sell.
Your home can help you in retirement.
Financially savvy folks do the best they can with what they have. They save where they can, keep their house in good shape, and put money away for retirement in preparation for healthy and happy golden years. But it’s not always so simple. Whether you decide to move closer to family, or reach a point where you just can’t get the health and happiness you want with the funds you have, your home ownership could be an unexpected boon. With a reverse mortgage, also known as a Home Equity Conversion Mortgage, or HECM, seniors aged 62-and-older can convert part of their home equity (wealth) into cash, a monthly check, or a line of credit.
No matter what your motivation for home ownership is, an Open Mortgage Loan Officer can help you explore options to find the right mortgage for you. Contact us today.