You’ve worked hard to become a homeowner. And, you want to make smart decisions on how to use your home’s equity so you can get the most out of your money. Whether you put your home equity toward debt consolidation or tuition payments, securing a home equity loan or line of credit can help finance the areas of your life that you may need help with or use it for a savings account to building retirement resources.
With a home equity loan or home equity line of credit (HELOC), you can use your home’s equity to consolidate debts, finance a college education, make home improvements and much more including a reverse mortgage. You can find affordable borrowing solutions to use your home equity wisely, based on your unique needs and lifestyle.
Using home equity to consolidate debt
Since equity loans and lines of credit can often carry lower interest rates, using your home equity for debt consolidation might be a smart decision for you. If you have existing credit card, student loan or auto loan debt with high interest rates, you can use your loan or line of credit to consolidate and pay off this debt – possibly with a lower interest rate.
Using home equity to invest in your future
Investing in your future, or in the future of your college-bound teen, may be a smart financial decision. Use your home equity line of credit or loan to finance a college education, whether it is your child’s or your own, and capitalize on the benefits of higher education.
Using home equity to invest in your home
Funding home improvements and renovations with a home equity loan or home equity line of credit can add significant value to your home.
Using home equity to support retirement
Funding a HECM MORTGAGE requires at least a 50% stake in your home equity, so if this is in your plans, be sure you don’t mortgage your home beyond the halfway mark on home equity so you can get a HECM, pay off the mortgage to eliminate the payments and ride home on your home equity (with no payments).
If you are able to keep mortgages out of the way, you’ll have a nice cache after you pay off the mortgage to streamline your retirement expenses. Also, make sure you are credit eligble and don’t have a new mortgage on the table within the last year.
In this way, your home purchase eventually turns into a bank in which you borrow your own money (equity) without payments to add to any 401k funds or tax deferred annuities you’ve purchased over the years.
For more information about HECMs, home equity and reverse mortgages contact Warren Strycker NMLS 247179, 928 345-1200. More information at home tab: Information.