A lot of people are afraid of refinancing their homes, but if you have a lot of credit card debt or other debts that are eating you alive with high interest rates, this would save you a lot of money in the long run.
Panama City, FL (PRWEB) October 01, 2015
“A lot of people are afraid of refinancing their homes, but if you have a lot of credit card debt or other debts that are eating you alive with high interest rates, this would save you a lot of money in the long run,” said Maura Schroeder. “The one caution here would be to make sure you have a monthly income that will cover your house payment. You don’t want to end up homeless because you can’t make your house payment.”
According to the aforementioned CNBC.com article, Social Security benefits may not be enough for a comfortable retirement so many people are using the equity in their home for an income boost. In addition to refinancing, other viable retirement strategies include borrowing against your house or renting it out to generate income.
“Due to the fact that the Federal Reserve is expected to raise interest rates before the end of the year, people who need to bolster their retirements should consider these options now,” said Maura. “And for people borrowing to buy a house, they may soon have to pay more.”
Maura further states that a mortgage or a home equity line of credit has some of the lowest-interest debt available, and so long as the borrower has the equity in their house and a job, they can find a bank willing to lend them money. “That being said, it would be smart to take advantage of this particular option before retiring,” said Maura.
A final option to use your home as a retirement asset is to sell it and downsize. By downsizing, you can use some of the profit for a new, smaller home and some to put in your retirement account or pay off existing debt.
About Maura Schroeder, Century 21
Maura Schroeder is a premier real estate agent in Panama City, Florida. Specializing in military moves, first-time homebuyers, empty-nesters, or anyone that wants to buy or sell a home, she provides the resources and information needed for buying and selling real estate. For more information, please call (850) 832-4224. The office is located at 2708 Highway 77, Panama City, FL 32405.
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