DANCING THE HORA USING HOME EQUITY
After a health scare a couple of years ago turned out to have only a minor impact, you reevaluated your plan to sell your home and move into a new, upscale retirement community in northern Indiana. Emotionally, it felt simpler to stay put in the home you’d owned for decades. Now, entering your seventies, you’re glad you made the decision to “age in place” in favor of the familiar. (That choice even freed up extra dollars for travel.)
Early next calendar year, with your twin grandchildren—a boy and a girl—turning 13, you’ve decided to organize and host a family reunion around the occasion of their Bar and Bat Mitzvah. After speaking with the rabbi and gathering cost estimates for hotel accommodations, catering, and other expenses, you realize the financial commitment would require liquidating portfolio assets to an uncomfortable degree. You’re still determined to proceed, but you begin considering whether to apply for a home equity line of credit—something you used years ago to help finance upgrades to your home after deciding to stay.
You might also consider an alternative way to tap your housing wealth: arranging a reverse mortgage line of credit on your home and using taxfree* withdrawals to help cover the cost of the family celebration. With no requirement to make monthly mortgage payments,** you can move forward with your plans without concern for ongoing cashflow obligations. Meanwhile, the unborrowed portion of your available housing wealth is guaranteed to grow at the same rate as the interest charged on the borrowed funds.
By using a reverse mortgage instead of a traditional home equity line of credit, you can have the whole family saying “Mazal Tov” and dancing the hora in style alongside the Bar Mitzvah boy and Bat Mitzvah girl.
https://mutualreverse.com/david-garrison
*Please consult a tax advisor.
**Borrower must occupy home as primary residence and remain current on property taxes, homeowner’s insurance, the costs of home maintenance, and any HOA fees.
David Garrison, NMLS ID 1595194. Mutual of Omaha Mortgage, Inc. dba Mutual of Omaha Reverse Mortgage, NMLS ID 1025894. 3131 Camino Del Rio N 1100, San Diego, CA 92108. Indiana-DFI Mortgage Lending License 43321. Michigan 1st Mortgage Broker/Lender/Servicer Registrant FR0022702. These materials are not from HUD or FHA and the document was not approved by HUD, FHA or any Government Agency. Subject to credit approval. For licensing information, go to: www.nmlsconsumeraccess.org
Equal Housing Lender