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In addition to proceeds generated from investments or distributions from retirement accounts after you stop working, some older Americans look to the equity value in their home as a potential source of cash should the need arise. When used responsibly, there are many vehicles designed to help you use the equity in your home to your advantage. From reconsolidating debt to providing income for older Americans or just reducing your monthly mortgage payments, the equity in your home can help provide the solutions you need to manage you and your family's finances more effectively.
HerTip: If you need cash, and are seriously considering refinancing, a second mortgage, or a home equity loan in order to get it, just be sure to weigh your options carefully. If you can't make the required payments, you could lose your home as well as the equity you've built up in it. There are some unscrupulous lenders out there who target elderly and low-income homeowners. They may offer loans with very high interest rates and credit costs can make borrowing money using your home very expensive if not impossible to sustain.
There are four basic vehicles designed to help you tap into the equity value you have built up in your home:
HerTip: Of these four, only reverse mortgages are specially designed to accommodate the needs of certain elderly Americans.
Continue to: Part IX: Joining the Workforce
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Introduction