USING HOME TO MAKE AWAY-FROM-HOME MEMORIES ACROSS THE GENERATIONS
Still getting used to the retired life on which you embarked just three years ago, you’ve been discussing hosting periodic family vacations to include your two grown children, the grandkids, possibly even inviting both sets of in-laws.
With both of you experienced in project management, this “making memories project” seems quite do-able in terms of making all the arrangements. You envision paying for everyone’s hotel, and excursions, plus footing the bill for one big welcome dinner for all. (Each family would have to cover the cost of their other meals.)
You’ve begun to create a general budget plan for the first trip in early 2027 and are now in the process of discussing with your wealth advisor which investment accounts to tap for executing each stage of the five-day “event”. (Also to be discussed is taking out a home equity loan, then repaying that loan over the course of a year, then again tapping the equity for each yearly trip.)
You might consider tapping into your housing wealth in a different way, by applying for a HECM reverse mortgage. The big difference is that there will never be any required monthly mortgage payments,* affording you much greater flexibility in terms of timing your withdrawals as the plans for the family trip progress. Meanwhile, any unused portion of your equity will be credited with growth at the same rate as that being charged on the borrowed funds.
As Travel Weekly by Northstar presents the concept, “Multi-generational family travel brings grandparents, parents, and children together to share new experiences, build core memories, and bridge generational gaps,”
Sounds as if the two of you are on the bandwagon, using your home equity to make away-from-home memories to share with your young and young-at-heart family members.
*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.orgEqual Housing Lender