9 Year Mortgage: Home Equity and Retirement

9 Year Mortgage: Is it a good idea to Depend on Home Equity for Retirement? 

Homes are generally a persons most valuable asset. Home equity, is a part of owning a home that many couples use as a resource when preparing for retirement, but is this really a good idea? 9 Year Mortgage suggests looking at the risks before making this decision to fund retirement. 

Effects of Economic Downturn  

There are indeed many advisers who do suggest using home equity and reversed mortgages to help fund retirement, but there is often a misconception in this, and depending on it to live off of. Advisers often try to suggest using equity funds to live comfortably if needed, but it should not be a first resort. Americans ages 50-70, have an increasing projection of reliability on home equity for retirement. Today, about half of the people in this age group use home equity, and this is projected to increase over another 30%. The recent studies done with this research suggests that in response to economic downturn, people have turned to home equity apposed to seeking other options or building a better savings. Some of the most alarming research done about these figures, is that about 40% of these individuals admitted to not being on track with paying off their mortgages.  

Risks of Using Home Equity to fund Retirement 

The economic downturn has greatly affected the housing market. Although things are starting to improve, the market is still slow to recover. In recent years, surveys have reported that it is because of the overall investment decrease, that people have tapped into their home equity to use for funding retirement.

9 year Mortgage offers some insight about the overall outcome of pulling out of home equity or reversed mortgages to fund retirement. Every retiree needs a secure place to live. Reversed mortgages and home equity lines of credit may seem initially like a low interest good idea, but may turn out overtime, to cost more then they seem. For example, the interest rates and fees that are associated with pulling out of reversed mortgages or home equity lines of credit, are in reality very high. As a result, taking out a reverse mortgage will generally deplete your home equity over time. This also affects your ability to purchase a smaller property down the road or any other investments of land down the road. Losing the home equity, can be a severe risk when it comes to thinking about funding assisted living, or any other life changes. 

Alternative Ideas

Before deciding to tap into reversed mortgages or home equity, 9 Year Mortgage suggests the following: 

1. Avoid loans 

2. Avoid downsizing home 

3. create a tighter budget and savings plan 

Doing some of these small things, may be a better alternative to unlocking part of your home equity that has been built upon a secure existing property. 

Always be Prepared 

It’s so important to remember that difficult times may unexpectedly occur wether that be in the home, or in the economy. Regardless, there are always ways to prepare and get a little ahead. As the economy improves, homes will increase in value, as well as personal investments. 9 Year Mortgage can’t stress enough that one can not depend on the economy to prepare for retirement. 9 Year Mortgage suggests families prepare now with food storage and other means of savings, to support personal lifestyles in times of crisis or downturn. 

The importance of Financial Planning 

Planning for retirement can not happen at a young enough age. 9 year Mortgage suggests any age group can start a personal savings, and prepare for the future. If one can learn methods to prepare for retirement early and learn strategies for saving early, the easier it will be for them to avoid tapping into home equity and other means for retirement. 9 Year Mortgage suggests speaking with one of our financial advisers or a personal financial adviser  to create and analyze a savings plan for you. It is never to late to start preparing for the future. 

Will The 9 Year Mortgage Plan Work For Me?

 To learn more about 9 Year Mortgage, and to find out if you qualify for the 9 Year Mortgage program.  Find out how soon you could be completely debt free, including your mortgage, with the 9 Year Mortgage Financial Plan. Find out what thousands of satisfied clients already know about taking control of their finances, and using the power of reverse compounding interest to beat the banks at their own game! 9 Year Mortgage representatives are standing by to answer all of your questions about our program, including how soon you will be debt free, and how much money you will save in interest! For more great money-saving ideas visit 9 Year Mortgage on YouTube or go directly to the 9 Year Mortgage Money Saving Minute.  9 Year Mortgage recently launched their Eliminating Debt with 9 Year Mortgage site , which is also full of valuable, free information.