Definition
Often referring to a reverse mortgage, it lets homeowners convert part of their home equity into cash without having to sell the property.
What to consider
- Consider if converting equity to cash fits your current financial needs.
- Understand the long-term impact on your home’s value.
- Seek professional advice to weigh the pros and cons.
Real world scenarios
- Retired, Glenda uses a reverse mortgage to tap into her home’s equity, supplementing her pension for daily living costs.
- Walt sets up a home equity conversion line so he can draw funds incrementally instead of receiving them all at once.
- Before signing, Joyce reviews fees and potential impacts on heirs, ensuring home equity conversion aligns with her legacy plans.
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