Life can certainly change unexpectedly, as many of us experienced in 2020. And when circumstances shift, it may be time to update your mortgage in order to suit your new needs. Here is a quick look at a few ways to generate money in the form of refinancing a current mortgage, a reverse mortgage, or a second mortgage.
Mortgage Refinancing
While most people refinance their existing mortgage in order to get a lower interest rate or a different length on the loan, others opt for it to generate cash. This can be used for other things like home improvements or consolidating debt.
Reverse Mortgage
A loan option available to those who are age 62 or older, it enables a person to borrow against the equity in their home and accept the money upfront, or as a line of credit. Payment is then due when the homeowner either sells the property or passes away.
Second Mortgage
Often called a home equity loan, it adds another mortgage onto the portion of your home that you’ve already paid down. This can free up a chunk of needed cash for things like college tuition, home remodels, home repairs, or to pay-off lingering student loans.
If you think it’s time to update your mortgage, call a Member Specialist at 800-422-5852 to help you determine which solution is right for you.
