Using Your Equity
If you're not familiar with how using equity works, allow us to explain some of the ways in which you can tap into the value of your home:
1. Some people chose to "trade down." Trading down is when you move into a less expensive home on or after retirement. For example, if you own a home that sells at $250,000 and purchase a home that costs $150,000, you've just freed up $100,000 in cash. Although you are subject to certain requirements, you can realize up to $250,000 in tax-free profits if you're single, and up to $500,000 if you're married.
2. Another way you can use your home's equity is by borrowing money against it. So, if you find yourself in a tight spot financially, you can borrow against your equity, providing you with a low-cost source of cash. The best thing about tapping into your equity this way is that the interest you pay is generally tax-deductible.
3. Still another way you can use your equity to your advantage is by taking out what is known as a "reverse mortgage." In this situation, your lender will send you a monthly check to spend any way you want. In the meantime, a debt balance is built up against the property, and will be paid off when the property is eventually sold.
For more information contact Stephanie Antes 612.750.6554 or
RickMcDeid 763.443.6680 or Visit us on the web at: www.OurHome4You.com
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