5 Ways To Turn Home Equity Into Retirement Paychecks
Summary
Many Americans have a lot of money tied up in their homes, called home equity, which they can use to get cash for retirement. There are five main ways to turn this home equity into money, including downsizing, getting a home equity line of credit, refinancing, doing a reverse mortgage, or renting out space.Key Facts
- Americans hold over $34 trillion in home equity, according to the Federal Reserve Bank of St. Louis.
- Home equity is the value of your house minus what you owe on your mortgage.
- Five ways to use home equity for retirement cash are: downsizing or moving, home equity line of credit (HELOC), cash-out refinance, reverse mortgage, and renting out part or all of the home.
- Downsizing means selling a larger home and moving to a smaller one to free up money and reduce living costs.
- A HELOC lets you borrow money against your home equity when needed, like a credit card.
- A cash-out refinance replaces your mortgage with a new one that has a lower payment and gives you extra cash.
- Reverse mortgages convert your home equity into income for seniors who want to stay in their home.
- Renting your home generates monthly income that can help support your retirement lifestyle.
Read the Full Article
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.
