This article was originally published on followtheyellowbrickhome.com on 8/29/19.
As we age, we often form different opinions about our investments. However, far too often we forget to examine our biggest investment … our home. Home equity, i.e. the current value of your home minus the amount of money that you still owe on it, is an investment vessel that can and should be looked at with different eyes as we age.
A recent study revealed that homeowners ages 62 and older are not only eligible for reverse mortgages, but they have an estimated $6.6 Trillion in home equity. The latter figure represents the real opportunities that exist if you want to leverage your home equity to create a holistic approach to your investments. Through a strategic approach and the lessons that are taught to us throughout life, your views on home equity can evolve as you age.
According to Experian’s State of Credit Report, the average amount of non-mortgage debt per household within the United States was $24,706 in 2017. Fast forward to 2019 and you will discover that home equity interest rates have reached near historic lows. Instead of carrying high-interest debt, you can choose to consolidate home equity for reinvestment purposes with a home equity loan, Home Equity Line of Credit (HELOC), or Figure Home Equity Line.
One of the reasons that you should consider Figure Home Equity Line is that approved customers will receive funds in as few as five days. Customers can also take additional draws on their loan, complete the entire application process online, and receive a fixed rate with a lump sum payout. The latter payout can then be used to make additional investments.
As we age, we often look at investment risks with a new set of eyes. We want our investments to provide a sustainable lifestyle, especially during our golden years. With this in mind, home equity can be a great way to diversify your portfolio by taking calculated risks. From investing in dividend-paying stocks to paying for educational expenses for your loved ones to making monetary driven home improvements, there are countless ways that you can use home equity to make additional investments.
The above investment ideas should be used as a starting point for the way you look at home equity through new eyes. After all, only you can determine the best course of action for your home and your chosen investment strategies. In this vein, you might decide that home equity is a great way to consolidate debt as you age.
You can use a home equity loan or HELOC to consolidate debt as you age. Whether you have just entered your golden years, or are still planning for retirement, home equity debt consolidation offers numerous advantages. These advantages include:
As seen through the above benefits, home equity debt consolidation can be a great tactic that homeowners ages 50 and older can use to improve their lifestyle, save for retirement, and free-up the funds needed to make other investments.
Through careful consideration, you can and should allow your views on home equity to change as you age. A strategic approach will allow you to use home equity as an investment tool. To discover how you can better leverage the power of your home equity to consolidate debt, diversify your investment portfolio, manage risk, and unlock new possibilities, contact Figure today.
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