It’s no secret that housing prices have been on the rise in recent years. This has caused many people to consider selling their property outright in order to cash in on their equity. However, there are a few things to consider before making this decision.
Selling property outright may seem like the best option, but it’s important to consider the taxes you may owe on the sale. If you have a mortgage, you may also owe a prepayment penalty.
Getting a 401k loan may be a good option if you need the cash and you don’t want to sell your property. However, you will have to pay interest on the loan and there may be fees associated with it.
Getting a second mortgage may be a good option if you can’t afford the payments on your first mortgage. However, you will have to pay interest on the second mortgage and your monthly payments will be higher.
Consider all of your options before making a decision on how to best use the equity in your home. Speak with a financial advisor to get more information on each of these options.