When you’re ready to retire, you’ll want to have a plan in place for your finances. One big question you may be wondering is whether to get a reverse mortgage, sell your property outright, or get a home equity loan. Here are a few things to consider before making a decision.
With a reverse mortgage, you can stay in your home and receive monthly payments from the bank. The loan is repaid when you die or sell the property.
Selling your property outright will give you a lump sum of cash to use however you want. But it may be tough to find a buyer if your house needs repairs or is in a rural area.
A home equity loan lets you borrow against the value of your home and use the money for things like home improvements or medical bills. Just be aware that you’ll have to make monthly payments on the loan, plus interest. And if you can’t make the payments, you could lose your home.
So, which option is best for you? It depends on your individual circumstances. Talk to a financial advisor to get more personalized advice.