Differences Between 401K Loans vs. Reverse Mortgages vs. Cash-Out Refinance
3 Ways to Tap Into Your Home Equity Without Mortgage Payments
If you’re over the age of 62 and own your home outright, or have a low mortgage balance, you may have access to a powerful financial tool: a reverse mortgage. This unique loan lets you borrow against your home equity without making monthly mortgage payments.
Another option for accessing your home equity is through a cash-out refinance. This type of loan allows you to refinance your current mortgage and take out a new loan for more than you owe. The difference is paid to you in cash.
A third way to tap into your home equity is through a home equity loan or line of credit. With this type of loan, you borrow against your home equity and make monthly payments, just like a traditional mortgage.
So, which is the best option for you? It depends on your individual circumstances. Here are a few things to consider before making a decision:
-Your age and retirement plans
-Your current financial situation
-Your mortgage balance and interest rate
-Your credit score
-The equity in your home
-Your tax situation
© 2024, Exuity