Q&A: House Rich, Needs Cash

A reader wants to know how she can tap into her home equity. Here, what Gordon Pape has to say.

Q – I’m a senior in my mid-70s. All my money is in my house and car. I have two grown children one who should not get a large sum at one time. How do go about getting some money from the house, as I have very little savings? – Jean F.

A – The obvious solution is to sell the house and move into a smaller rental accommodation. This would give you a significant amount of capital, which could then be invested.

If you want to stay in the house, consider renting a room or, if available, a basement apartment. You could also apply for a home equity line of credit, which would have to be repaid over time. Or you could consider a reverse mortgage, which would not require any repayment until you move or die. – G.P.

 

Do you have a money question you’d like to ask Gordon? Find out how to submit it here and then check out our Money section regularly to see if it was chosen for a response. Sorry, we cannot send personal answers.