House Rich, Cash Poor
Are you house rich but cash poor? If so, what are your options?
You may want to consider selling your home and moving to more affordable housing – whether this means buying a smaller home or renting a place. Then you can use the assets from your home sale to invest, and use the investment returns to help pay your long-term care expenses.
If you don’t want to sell your home, then you may be able use the equity in your home in a different way. You may be able to take out either a home equity loan or a reverse mortgage
A home equity loan is usually a second mortgage on your home. Your home is used as collateral and the financial institution gives you a loan either as a lump sum or line of credit.
Shop around if you decide to take out a home equity loan as the interest rates and other features can be different. Look for a loan that meets your particular needs. Read the credit agreement carefully and be sure you understand all the terms of the loan, including the cost in interest and other fees that you must pay.
