HOME EQUITY ENABLES GETTING AROUND WHLE STAYING HOME
While you’re feeling the crunch of higher living costs along with everyone else, you’re both feeling secure in your decision to spend your retirement years at home (you retired two years ago, your husband at the end of last year). Over the past two years, you oversaw a modest home remodel and an update of your heating and cooling systems – all with no borrowing, you’re proud to share.
The recent spike in gasoline prices has turned your attention to the two vehicles you own, and you’ve discussed replacing them with small electric cars. Unlike most of your female friends (and, to a certain extent, your spouse), you have never been afraid of gadgetry or technology, and the timing certainly seems right to “convert”. On the other hand, you are uncomfortable with either cashing in investments (for both tax reasons and to preserve regular cash flow in retirement) or with taking on debt repayments just as you’re “settling into retirement.
You might consider tapping into your “housing wealth” to finance the purchase of electric vehicles (and the charging station), by applying for a HECM reverse mortgage. Of course, you’d continue to be responsible for property tax, insurance, and maintenance, but there will be no required monthly mortgage payments.* (If, in fact, you find the savings on gasoline significant in terms of your budget, you may choose to “infuse” cash into the account.) Meanwhile, any unused portion of your equity will be credited with non-taxable growth at the same rate as that being charged on borrowed funds.
In a move to help combat the rising cost of gasoline by switching to electric cars, your home equity can help enable you to “get around” while “staying in place”.
https://mutualreverse.com/david-garrison
*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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