Before You Tap Your Equity...

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Before You Tap Your Equity, Ask This Question.

When homeowners consider accessing their equity, the first question is usually:

“How much can I get?”

That's important.

But there's another question I think deserves just as much attention:

“What could happen to my equity afterward?”

Different home equity options can have very different long-term costs.

With a traditional loan, you may make monthly payments of principal and interest.

With a reverse second mortgage, interest can accrue and the balance may grow over time if voluntary payments aren't made.

With a Home Equity Investment, there isn't a traditional interest-bearing loan balance. Instead, the eventual settlement is determined according to the agreement and the home's future value or change in value.

And nobody knows exactly what your home will be worth 5, 10 or 15 years from now.

That's why I don't believe the goal should simply be finding the option that provides the most money today.

The goal should be understanding the benefits, costs and tradeoffs—and finding the option that best fits what you're trying to accomplish.

Sometimes that may even mean deciding not to access the equity at all.

Would you like more information? Click Here

Rob Clark | Home Loan Consultant
209-227-7745 | 559-476-9279
rbrtclark53@gmail.com
robertclarkloans.com

Advertising Disclosure: This information is for educational purposes only and is not a commitment to lend or offer of credit. Programs, terms, costs, eligibility requirements and availability are subject to change. Home values may increase or decrease, and future appreciation is not guaranteed. Home Equity Investments are not traditional loans and may reduce future home equity. Reverse second mortgages are loans and accrue interest.

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