Wealth In Equity: Private Mortgage Insurance, Forgotten Costs
With the housing market up meaningfully since its peak in 2006, we have amazing wealth in equity. However, new homeowners have been required to meet strict guidelines to qualify for a mortgage. Once such qualification is purchasing Private Mortgage Insurance (PMI). Reviewing your situation with a financial advisor can help bring attention to these costs so you can eliminate them.
Should I Consider a Reverse Mortgage?
Reverse mortgages are often marketed to seniors to help fund retirement using the equity in their home. Regrettably, some seniors have been forced to sell their homes to unwind the reverse mortgage. Review your options with a financial advisor to determine if a reverse mortgage is right for your household.
Cash-Out Refinancing
A Cash-Out refinance is a strategy that allows a homeowner to pursue a lower interest rate on their mortgage while also taking out a lump sum of cash against the equity in the home.
Refinancing to Change Loan Terms
Refinancing in the current interest rate environment seems ineffective but in certain circumstances changes to loan terms can have a favorable outcome.
Changes to Home Interest Deduction
Home mortgage interest that is deductible as an Itemized Deduction is subject to limitations. Consult with a tax preparer to review new limitations before making changes to your current mortgage loan.
Right Sizing for the Future
Right-sizing is the process of selling your home to get into something that fits your lifestyle and better serves your needs. If you’re looking for a lifestyle change, the equity in your home can become a useful tool.