3 Ways to Get Cash From Your Home Without Selling It
When you own a home, you have several options for turning that asset into cash. You could sell the property outright, get a traditional mortgage or take out a reverse mortgage. Each option has different benefits and drawbacks that you should consider before making a decision.
Selling Your Home
If you sell your home, you will have a lump sum of cash to use as you please. You could use the money to buy a smaller home, pay off debts or invest in another property. The downside of selling is that you will have to find another place to live. You will also have to go through the hassle and expense of moving.
Getting a Cash-Out Refinance
A cash-out refinance allows you to borrow against the equity you have in your home. You can use the money you borrow to pay off debts, make home improvements or invest in another property. The downside of a cash-out refinance is that you will have to pay interest on the loan. You will also have to make monthly payments until the loan is paid off.
Getting a Reverse Mortgage
A reverse mortgage is a loan that allows you to tap into the equity you have in your home. The money you borrow does not have to be repaid until you die or sell the property. The downside of a reverse mortgage is that you may owe more than the value of your home when the loan becomes due.