Answers
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.
**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.
