What’s the best way for parents to tap the Equity in their home? What’s the worst way?
As parents get older they might choose to use their savings and their investments to help children and grandchildren while they’re still alive to enjoy the fruits of their gifts. But as some parents get older, they might find there isn’t enough money for their own care as 401(k) plans depreciate in value and as medical bills and care bills increase.
One option for finding money for seniors is to tap into the equity of their home. What’s the best way to do that? What’s the worst way? Elder law attorney Martha Patterson has frequently been called upon by her clients to help them with their finances. Here are some options that you could consider.
First, she says to shop around for the best loan plans. What’s advertised on TV may not be the best plan. There is a lot of advertising for reverse mortgages which could be good — but they could be bad. You really have to decide what’s best and it’s an individual decision based on individual circumstances.
Don’t forget to look into bank products such as home equity lines of credit, says Martha Patterson, but most importantly always remember that loans taken out on a home must be paid back. “Always ask how are you going to pay it back? it has to be paid back,” she says and that may mean losing some equity for heirs.
Elder law attorney Martha Patterson offers a free consultation and $500 off any paid services when you contact her at her website www.ElderLawMom.com and this is something you shouldn’t put off.