tapping into home equity
I own a home; there is no mortgage. My elderly 95 year old mother lives in the house independently. She can continue to live there as long as she wants. My wife and I live in an apartment. I would like to tap into my equity and use that money to purchase either another home, coop or apartment. Do you have any ideas other than a loan against the home so I can tap into my equity while my mother continues to reside in the home. My wife and I have no intentions of ever moving into the home, even after my mother passes.
Terry Says
I would counsel patience. This is no time to create leverage in your finances. YOu will be asked if this is YOUR residence. if it is not, it will be considered an investment property. The interest will not be deductible. You won’t get a low rate. While I wish your mother a good long life — wow 95 is already amazing!
When she passes on, or needs to go into a nursing home (I hope that never happens) then you can sell the home to pay for her care. (You REALLY don’t want her in a Medicaid-funded nursing home if it comes to that). And then you can take the balance of the money and make your next purchase. In these uncertain times, you don’t want to take on new debt — despite the enticing low rates.
