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.
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