In Kiplinger Personal Finance magazine, financial planner Mario Hernandez recalls a conversation he had with a client who was looking to fund the construction of a swimming pool at his house. The client had enough cash to pay for the project, but had asked Hernandez to help him weigh all the different financial options.
Hernandez goes on to offer his client a rundown of four common options, including:
- Using money from cash reserves
- Using money from an investment portfolio
- Applying for a home equity line of credit
- Taking advantage of a no-interest introductory credit card offer (typically good for 6-21 months
Whether the client is updating the outdoor features of his home for health reasons or to increase its market value, as Mario Hernandez so correctly remarks,”Funding a large purchase should be thoughtfully planned”, with consideration given to how a potential purchase would impact your overall financial plan and long-term goals.
Using reverse mortgage funding, the over-62 client would avoid depleting emergency cash reserves, cashing in investments at what might prove to be an inopportune time (not to mention possibly generating capital gains tax), and avoiding the need to make home equity line of credit monthly mortgage payments. Invulnerable to stock market unrest, for a homeowner over the age of 62, the “fifth option” might prove most feasible.
https://mutualreverse.com/david-garrison
Readers, if you’d like to see what you might qualify for with a reverse mortgage in Indiana, or to download your Reverse Mortgage Guide Click Here(and scroll down).
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
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