There’s money buried in your backyard. And you don’t need a shovel to find it.
Learn how home equity can help you fund a better retirement.
It ’s a well- known fac t that for many older Americans, the home i s their single biggest asset, often accounting for more than 45% of their total net wor th. And with i nterest rates still near all- time l ows while home values remain high, this combination creates the per fec t dynamic for getting the most out of your built- up equity.
But, many aren’t taking advantage of this unprecedented period. According to new statistics from the mor tgage i ndustr y, senior homeowners i n the U. S. are now sitting on more than 8.05 trillion dollars* of unused home equity.
Not only are people living longer than ever before, but there is also greater uncertainty in the ecomony. With home prices back up again, ignoring this“hidden wealth” may prove to be shortsighted when looking for the best long-term outcome. All things considered, it’ s not surprising that more than a million homeowners have already used a government-insured Home Equity Conversion Mortgage( HE CM) loan to
For example, a l ot of people mistakenly believe the home must be paid off i n full i n order to qualify for a HECM l oan, which i s not the case. I n fac t, one key advantage of a HECM i s that the proceeds will first be used to pay off any existing l i ens on the proper t y, which frees up cash flow, a huge blessing for seniors l i ving on a fixed i ncome. Unfor tunately, many senior homeowners who might be better off with a HECM l oan don’t even bother to get more i nformation because of rumors they ’ ve heard. I n fac t, a recent sur vey by American Advisors Group (AAG), the nation’s number one HECM l ender, found that over 98% of their clients are satisfied with their l oans. While these special l oans are not for ever yone, they can be a real l i fesaver for senior homeowners - especially i n times l i ke these. The cash from a HECM l oan can be used for almost any purpose. Other common uses include making home i mprovements, paying off medical bills or helping other family members. Some people simply need the extra