Making the Most of Home Equity: Tips for Senior Citizens

• Consider a reverse mortgage. If you are at least 62 years old and owe little or nothing on your home, you can take out a reverse mortgage that will pay you a certain amount each month. The loan won’t have to be repaid until the home is sold.
•  Understand the type of loan you’re getting. There are many kinds of home equity loans: fixed rate, adjustable rate, lump sum, line of credit. Each has advantages and disadvantages, depending on your personal financial situation.
• Borrow only as much as you can afford. Make sure the monthly payments on your loan fit within your budget. If you can’t make the payments, you could lose your house.
• Use a professional. Borrow only from a reputable mortgage broker or lender, preferably someone who is a CMC or CRMS.

Tips 5-7

• Get a second opinion. Talk about the loan you are considering with a relative, friend or lawyer. They might notice something you might have missed or not considered.
• Don’t use home equity for a quick financial fix. Don’t rely on your home equity to get you out of financial trouble. There are other options available — from credit counseling to even bankruptcy — that don’t put your home at risk.
• Don’t respond to door-to-door salesmen, telemarketers or internet ads. These are scam artists’ favorite sales techniques. If you’re considering borrowing against your home equity, ask friends or family about a reputable broker or lender who can help you.

Tips 8-10

• Beware of borrowing through a home-improvement contractor. Contractors are generally interested in just one thing: making a quick sale. They’re likely to charge you a higher interest rate and may even fail to follow through on the work they promise.
• Don’t give in to high-pressure salesmen. No reputable broker or lender will try to pressure you to take out a loan. Walk away from anyone pressuring you to sign off on a loan.
• Don’t take out any loan you don’t fully understand or aren’t completely comfortable with. It’s your loan and your house. If you aren’t happy with the loan terms, don’t understand what you’re being asked to sign or just have a bad feeling about it, just say no.We hope you found this article about “Making the Most of Home Equity: Tips for Senior Citizens” helpful.  If you have questions or need expert tax or family office advice that’s refreshingly objective (we never sell investments), please contact us or visit our Family office page  or our website at www.GROCO.com.  Unfortunately, we no longer give advice to other tax professionals gratis.To receive our free newsletter, contact us here.

  Subscribe our YouTube Channel for more updates.

  

  Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of GROCO.com.  GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.

   

  Alan L. Olsen, CPA, Wikipedia Bio

   

  

   

  GROCO.com is a proud sponsor of The American Dreams Show.

   

  

  The American Dreams show was the brainchild of Alan Olsen, CPA, MBA. It was originally created to fill a specific need; often inexperienced entrepreneurs lacked basic information about raising capital and how to successfully start a business.

  Alan sincerely wanted to respond to the many requests from aspiring entrepreneurs asking for the information and introductions they needed. But he had to find a way to help in which his venture capital clients and friends would not mind.

  The American Dreams show became the solution, first as a radio show and now with YouTube videos as well. Always respectful of interview guest’s time, he’s able to give access to individuals information and inspiration previously inaccessible to the first-time entrepreneurs who need it most.

  They can listen to venture capitalists and successful business people explain first-hand, how they got to where they are, how to start a company, how to overcome challenges, how they see the future evolving, opportunities, work-life balance and so much more..

  American Dreams discusses many topics from some of the world’s most successful individuals about their secrets to life’s success. Topics from guest have included:

  Creating purpose in life / Building a foundation for their life / Solving problems / Finding fulfillment through philanthropy and service / Becoming self-reliant / Enhancing effective leadership / Balancing family and work…

  

  MyPaths.com (Also sponsored by GROCO) provides free access to content and world-class entrepreneurs, influencers and thought leaders’ personal success stories. To help you find your path in life to true, sustainable success & happiness.  It’s mission statement:

  In an increasingly complex and difficult world, we hope to help you find your personal path in life and build a strong foundation by learning how others found success and happiness. True and sustainable success and happiness are different for each one of us but possible, often despite significant challenges.

  Our mission at MyPaths.com is to provide resources and firsthand accounts of how others found their paths in life, so you can do the same.