The U.S. economy runs on cash, and cash comes from your house.
I was amazed at the latest news on record-high equity amounts currently among Baby Boomers. For the Senior 62 and over, the housing wealth in the United States had risen this year by 1.6% to a total of (are you sitting down?) $7.54 Trillion in equity. Wow! That’s Trillion with a “T,” which is a mind-blowing amount of money. Not that Millions or Billions isn’t a large amount of money. But Trillions is a number we’ve been hearing a lot in the past few months, think the CARES act.
Cashing out of your some or all of your equity may not be something you’ve considered. Most of us Baby Boomers have been accustomed to saving our nickels and dimes for “a rainy day.” Well if the Global pandemic isn’t “a rainy day” I’m not certain what qualifies as such.
Reverse mortgages are probably a good idea under certain circumstances, such as a pandemic. Baby boomers who got hugely wealthy on real estate, from 1965 thru today, have seen the increase in real estate value (as well as everything else) and it has been amazing. It may be time to take some of the equity out and put it back in the economy, the country needs it.
For older folks, the pandemic is indeed a challenging time economically, long-term decisions are afoot: what to do with our properties, where does the reverse mortgage make sense for you and so on? There is a lot of uncertainty now, from the virus, to unemployment to the economy.
Maybe cashing out some equity works in your case? Let me know if there is something I can help you with or questions I can answer about reverse mortgages, or other means of cashing out. Happy to help out, just email me at firstname.lastname@example.org.