How seniors can tap home’s equity

Last weekend, my childhood best friend died at 62. Partly due to poor health, he became financially challenged later in life.

Thank God he had a stash of cash. His Orange County home was free and clear, completely paid for.

His home equity could have been put to good use. Basic living expenses, badly needed home repairs and occasionally a nice dinner out.

My best friend was of his own mind. Somehow, some way, he had a mental block about tapping into his home equity.

Or, maybe he was fine as he was

U.S. life expectancy is 76.1 years, according to the National Center for Health Statistics.

Are you on the financial edge? Are you going to outlive your money?

Then what?

Over the years, I’ve received countless calls from struggling seniors. But nevertheless, they are the fortunate ones having that mother lode of assets — a home. Many contemplate downsizing.

That tends to be distasteful, most say.

So what are their options to extract equity?

Every senior’s situation is unique. There are three important points you must consider before thinking about the possibility of extracting home equity.

First, lenders cannot deny you a mortgage or discriminate against you because of your age. It doesn’t matter if you are 90 years old and you are taking out, say, a new 30-year mortgage. If you die before the mortgage is paid off (because you didn’t quite live until age 120), your heirs can assume the existing mortgage.

Secondly, before going to a financial counselor, mortgage person or even a real estate agent, get the person you trust the most in life to offer you nonjudgmental emotional support.

You should not feel embarrassed or ashamed. The older you get, the easier it is to be tricked, pressured and swayed