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  • Editorial 


    NewRetirement

    San Francisco, CA

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  • There could be many "right" answers about tapping your home equity for retirement. Your answer will depend on what you value.

    First, there are lifestyle considerations:
    --> If you love your home and staying there is important to you, then a Reverse Mortgage enables you to fulfill that goal.
    --> On the other hand, perhaps downsizing would improve your lifestyle by giving you fewer maintenance tasks, a better location or other benefit.

    Secondly are financial considerations:
    --> Reverse Mortgages can be more costly than downsizing.

    However, I did a little math and here are some numbers for you if your home is valued at $160,000 then:
    -------> You could access about $100,000 with a Reverse Mortgage, but there are closing costs and interest fees associated with accessing this money.
    -------> According to Trulia (an internet real estate company), the average price for homes for sale in your area is $150,000. However, perhaps you could find a home for significantly less.

    We wish you all the best!
    http://www.NewRetirement.com

  • Login to rate this answer:   Answered on 2/24/2013
  • Steve 

    Steve 
    NewRetirement

    San Francisco, CA

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  • Another option that one of our users is considering is to rent their larger home and then use a HECM for purchase to buy a smaller home.

    This option could preserve the equity in your current home, generate income and lower your housing costs, but depends on whether you have enough cash to purchase the new home and what you'll make from rent on your existing home.

    You can learn more about HECM for Purchase here: http://www.newretirement.com/Services/Reverse_Mortgage_for_Purchase.aspx

    There's a form on the right of that article if you'd like to talk to someone about this option.

    Hope this is helpful.

  • Login to rate this answer:   Answered on 2/25/2013
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.