Buying Your Way Out of Debt: Equity Release
Equity release can be a confusing concept for many people, but it is actually quite simple. Equity release works by allowing the equity in your home to be converted into cash that you can use at any time. It’s becoming popular among retirees and those who are nearing retirement age because they’re looking for ways to generate some income without having to work or live off of their savings. Whether it’s an important purchase, medical costs, or just paying off debt-equity release gives you the freedom to do what you want with your money! Joslin Rhodes has some useful tips for you!
First and foremost, you need to be at least 55 years old to qualify for equity release. You also must own your home outright or have a very small mortgage balance remaining. The amount of cash that you can receive is based on several factors such as your age, the value of your home, and prevailing interest rates.
There are two types of equity release products: lifetime mortgages and drawdown plans. A lifetime mortgage is a loan that’s taken out against the value of your home, but you don’t have to start making payments until you die or move out of the house. Withdrawals from a drawdown plan are made gradually over time, giving you more flexibility with how much money you want to access at any given time.
Also, it’s important to note that the equity in your home is only accessible once you pass away or move out of the house. You can’t use it for any other purpose while you’re still alive. Equity release gives people options, but there are some things to consider before taking out a lifetime mortgage or signing up for a drawdown plan!
Equity release is a great way for seniors to generate some extra cash and still live comfortably. If you’re ready to start your application, then it’s time to give us a call!