There's a right and a wrong way to tap your home's value.
Teddy Nykiel is a staff writer at NerdWallet, a personal finance website. Email: firstname.lastname@example.org. Twitter: @teddynykiel
Tapping into your home's equity can be a great way to boost your business. Getting traditional financing may be difficult, so if you have substantial equity built already it may not be a bad idea. There are many things to consider before you pull the trigger, interest rates and payments obviously being one of them.
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With newer laws and regulations in place, much of the worry has dissipated for reverse mortgage borrowers and lenders alike
Prevailing wisdom may be changing on what was once assumed to be the right course.
Over the last decade, reverse mortgages have been aggressively pitched in TV ads as an easy way for seniors to cash in their home equity to pay for living expenses. However, for many, improper use of the product -- such as pulling all their cash out at one time -- has led to significant financial problems later, including foreclosure.
Summer may be real estate's busy season, but winter offers great opportunities for buying a house, especially for renters looking to become homeowners, growing families trading up to larger houses and baby boomers seeking homes to fit their evolving lifestyles.
For many people, their home is their biggest investment, so it only makes sense to think of it as part of what you have 'set aside.' But while your home is definitely part of your overall net worth, how it factors into your retirement savings depends on more than your current equity. It depends on whether or not you're going to turn that equity into cash when you retire.
For qualifying seniors, now really is a great time to consider a government-insured reverse mortgage, and here's why: Seniors can get more money out of their homes now then they will when interest rates, now at historic lows, begin to rise again.
The Federal Housing Finance Agency declined the federal government's proposal for principal reduction on underwater mortgages chronically behind on payment -- it said principal reduction does not prevent foreclosures while saving taxpayers money.