• Question
  • HOW DO WE GET A TYPE OF LOAN ON OUR HOUSE?

    Asked by a 82 year old woman from Midway, FL on 2/25/2013

    HOW DO WE GET A TYPE OF LOAN ON OUR HOUSE?

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  • Categories: Housing, Tapping home equity

Answers

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  • Assuming you own your home, there are several types of loans you can apply for to tap into your home's equity depending on your needs.

    A reverse mortgage will allow you to take equity from your home in the form of payments, a lump sum or a line of credit. While these loans can be repaid, they are typically repaid with the home itself when you move out. A reverse mortgage does not require good credit. A Home Equity Line of Credit or HELOC, however, will require good credit, but could be less expensive and the creditor is expected to repay the loan and keep their home.

    A good starting point may be to review this article: http://www.newretirement.com/services/Home_Equity_Solutions_Advantages_Disadvantages.aspx.

    This answer is provided as general information only and provided by Master’s students pursuing a degree in Personal Financial Planning at Texas Tech University. 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 PlannerTM as to your unique financial situation.

  • Login to rate this answer:   Answered on 5/4/2013
**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.