Home equity (how much you owe on your mortgage subtracted from how much your home is worth) can be a useful and often overlooked retirement asset, according to an article published by MoneyTalkNews. If you have holes (things you want or need to fund) in your retirement plan, they can perhaps be filled with your home equity.
Too many people have not saved quite enough for a secure retirement, but your home equity may make up the difference between what you need in savings and what you actually have.
So, how can you tap into your home equity?
You have so many options for accessing your home equity, among them is getting a reverse mortgage.
The federally-insured Home Equity Conversion Mortgage (HECM) program allows homeowners aged 62 and older to borrow against the value they’ve built up in their homes. Borrowers can use their proceeds to pay off the remainder of their existing mortgage, which is also one of the loan’s requirements. Any remaining funds can then be used at the borrower’s discretion. Read the full article.