Are you older than fifty-five years old? Are you tired of working your job? Do you feel as if you need a long vacation? Maybe it’s time to retir...
Are you older than fifty-five years old? Are you tired of working your job? Do you feel as if you need a long vacation? Maybe it’s time to retire. However, a lot of people can’t retire very early because they don’t have enough money saved up. Perhaps you haven’t invested in your retirement for very long and you feel as if there’s just not enough cash to last you for the rest of your life.
Well, you might be interested to know that if you own your house, you could be eligible for a great way to retire with enough money to last you for the rest of your life.
What Is Equity?
Investing in real estate is always smart because properties almost always increase in value. When you first purchase your home, you’re actually purchasing equity. Equity is basically your home’s market value. As time goes by, your house increases in value but you’re still paying the same mortgage rate for it. As a result, you gradually accrue a profit in the form of equity. Based on how much is left on your mortgage, the amount of equity you have could vary. If you’ve only recently purchased a house and you still have twenty-five years left on your mortgage, for instance, you might not have much equity.
Equity is not a liquid asset but lenders are beginning to offer plans such as lifetime mortgages that allow you to turn your home equity into tax-free liquid cash.
If you’ve owned your home for a couple of decades, it’s likely that your house is your biggest asset. Your property value has almost certainly increased and you probably have a good amount of equity to work with. If you’re interested in retiring, you might want to consider looking into a cost effective equity release. An equity release allows you to convert your property’s value into spending money, which is completely tax-free.
Releasing equity can be a great way to get the extra money you need so that you can retire when you’re ready. You can speak to a lifetime mortgage professional in order to find out how much equity you could release. You might be surprised to learn how much your property is actually worth.
Some people are nervous about releasing their equity because they’d like to keep the option to move homes or simply retain ownership of their homes. You can actually find equity release companies that allow you to keep one hundred percent ownership of your home so you don’t have to worry about getting kicked out of your home for any unsuspected reason. You can also keep the ability to move home as well so you don’t have to feel tied down to your home for the rest of your life.
Releasing your equity is a big decision and it might require a bit of research. If you have questions about the logistics of releasing your home equity, you should seek out a team of professionals who can give you the advice you need in order to make the decision to release your equity.