From home repairs to credit card debt to retirement planning, the St. Louis Post-Dispatch suggests homeowners consider instances when it makes sense to tap into their home equity through reverse mortgages or lines of credit.
“Improving your home and increasing its value are often good reasons to use your home equity,” AJ Smith writes. “If you bought a home that needs an addition, garage, finished basement, cosmetic improvement or kitchen or bathroom updates, tapping into your home equity can provide the necessary funds.”
Additionally, as Americans prioritize paying their mortgages ahead of their credit card bills, personal debt can soar. Using home equity to pay down that debt can potentially help, but doing so comes with its own set of risks, Smith notes.
Finally, using a reverse mortgage to help fill gaps in retirement income can be helpful, especially as retirees in 49 out of 50 states have insufficient retirement income.
Previously, a survey of 1,000 people found that 85% of respondents said having a guaranteed monthly income stream was their top priority for retirement planning. A reverse mortgage, the survey found, could help alleviate that concern.
To read the full St. Louis Post-Dispatch article, click here.
Written by Emily Study