Call Us! (855) 741-4848
Call Us! (855) 741-4848
Alternatives to a Reverse Mortgage
Those who are in urgent need of some cash for things like medical expenses, but would still want to live in their houses, can sell their house fast to Dependable Homebuyers, who will then rent the home back to them. Unlike a reverse mortgage, the person who sold the home will no longer be responsible for any repairs that are needed for the home. This option is perfect for elderly people who have owned their homes for long periods of time and want to remain there throughout their twilight years but need money for bills that are associated with aging. The only thing they will need to think of is paying the rent. Dependable Homebuyers will be responsible for any repairs that have been performed. This is excellent for retirees who do not have the strength, stamina, or expendable cash to perform such tasks as yard work and home repair. It is a very similar experience as renting an apartment except the apartment is actually the house you have come to know and cherish.
Dependable Homebuyers is composed of a team of real estate professionals who are familiar with the neighborhoods that they are assigned to and are therefore well versed in determining a suitable price for the home in the current market. As such, after inspecting the home, they can provide the homeowner with a guaranteed cash offer within 24 to 48 hours. Those who are interested in selling their home to Dependable Homebuyers will just need to know that there are four basic steps.:
We at Dependable Homebuyers (We Buy Houses) pride ourselves on buying homes quickly, allowing the homeowner to get hold of the money that they need in just a short amount of time. Our cash offers for the home are always fair, and our customers are always given the best possible price for their home.
If, for some reason, this does not seem like the right fit for you, there are several other alternative methods you can consider before undertaking a reverse mortgage.
Don’t delay! Pick up the phone and give us a call at (855) 741-4848. Our offers have no obligations and come with zero strings attached.
If you have an existing home loan, you may be able to refinance your mortgage to lower your monthly payments and free up some money. One of the best reasons to refinance is to lower the interest rate on your mortgage, which can save you money over the life of the loan, lower the size of your monthly repayments and help you build a stake in your home quicker. Also, if you refinance instead of getting a reverse mortgage, your home continues to be an asset for you and your beneficiaries.
Basically a second mortgage, a home-equity loan lets you receive money by leveraging the equity you have in your home. It works the same way your primary mortgage does. You receive the loan as an upfront lump-sum payment, and you cannot draw any additional funds from the house.
For tax years up to 2018, interest on a home-equity loan for amounts up to $100,000 are frequently deductible regardless of how you used the loan, be it for credit card debt or for student loans, etc. Additionally, if you use the loan for what are called qualified purposes which are to, “buy, build or substantially improve the residence that secures the loan,” you could take tax deductions on up to $1 million including any first-mortgage debt you have.
Nevertheless, the new Tax Cuts and Jobs Act narrowed the eligibility for a home-equity loan deduction. For tax years 2018 through 2025, you will not be able to deduct home-equity loan interest unless the loan is used specifically for the qualified purposes described above. It also dropped the level at which interest is deductible to loans of $750,000 or less.
These loans are generally fixed-rate loans, which provide protection against rising interest rates. Due to that, the interest rate is typically higher than for a home equity line of credit. As with refinancing, your home remains an asset for you and your grantees. Unfortunately, because your home acts as insurance, it’s important to understand that it is at risk of foreclosure if you default on the loan.
<pclass=”alert alert-info”>If Refinancing your existing mortgage, or taking out a Home-Equity loan is not an option for you. Pick up the phone and give us a call at (855) 741-4848. Our offers have no obligations and come with zero strings attached.
The above choices keep you in your existing home. If you’re willing and able to move, though, selling your home gives you access to the equity you have built. This option may be particularly appealing if your home is larger than you currently need, too challenging or costly to maintain, or has prohibitively exorbitant property taxes. The profits can be used to buy a smaller, more affordable home or to rent, and you’ll have extra money to save, invest or spend as needed.
Another alternative to a reverse mortgage is to sell your home to your children. One approach is a sale-leaseback agreement, in which you sell the house, then rent it back using the cash from the sale. As landlords, your children get rental income and will be able to take discounts for depreciation, real estate taxes, and maintenance.
Another method is set up a private reverse mortgage, which works like a reverse mortgage except the interest and fees stay in the family. Your children make regular payments to you, and when it’s time to sell the house, they recover their contributions and interest. Although it’s not free to set up this type of arrangement, it is typically much cheaper than getting a reverse mortgage through a bank, and the home remains an asset for you and your children. Selling to your children has tax and estate-planning consequences, so it’s important to work with a competent tax specialist or attorney.
