Financial Literacy Month - Facts About Home Equity
What you need to know about home equity
$11.03 trillion – total untapped home equity in the United States
$6.2 trillion – the amount of home equity held by homeowners 62 and older (more than half of the U.S. total)
Popular ways to access home equity: Home Equity Loan Home Equity Line of Credit Cash Out refinance Selling the Home
Reverse mortgages allow seniors aged 62 and older to access the equity in their home as well.
Any existing mortgage loans are replaced with a new reverse mortgage on which no monthly mortgage payments are required. Additional proceeds can be taken as: o A lump sum o Fixed monthly payment (tenure or term) o A line of creditchannin o A combination of the above
Unlike traditional Home Equity Lines of Credit, reverse mortgages don't require ongoing monthly payments, don't have a predefined due date, and cannot be frozen or reduced. Additionally, the unused portion of the reverse mortgage line grows every month!
If you are curious how a reverse mortgage might work for you or someone you know, get in touch today!