If you or a family member is a homeowner over the age of 62, you may have considered a reverse mortgage to access your home equity. However, did you know that a Golden Equity line of credit can offer more flexibility than a reverse mortgage? Often, it includes stronger benefits depending on your financial goals.
Home equity lines of credit (HELOC) and reverse mortgages are popular topics, right along with cash-out refinancing. But if you’re age 62 or above, a golden equity line of credit is worth considering.
Golden Equity is a unique home equity line of credit that operates similar to a HELOC, while offering powerful benefits and advantages to homeowners age 62 and above.
With golden equity, you can use your home equity for anything you decide and there are no restrictions. Pay off an existing mortgage, pay medical expenses, home repairs or renovations, even add to other investments.
Here’s how a standard home equity line of credit (HELOC) operates.
A Home Equity Line of Credit or HELOC is a great option when you want to borrow money against your home without refinancing. Unlike a home equity loan, a home equity line of credit (HELOC) is an open line of credit that uses your home as collateral.
A homeowner can draw from the account at their convenience and repay based on the terms of your HELOC. You can borrow in small chunks or a lump sum, pay it off every month, or pay it off slowly according to the terms of your HELOC.
Powerful Advantages to Golden Equity
Golden equity is a unique home equity line of credit you can use for anything you like, without restrictions. Similar to a standard HELOC, golden equity is a line of credit that uses your home as collateral for the loan. But golden equity offers powerful advantages:
- Keep the title of your home
- No monthly mortgage payments required
- Interest is deductible if optional payments are made
- A reusable open line of credit opens up to 75% of your home’s value
- Line of credit can continue to grow for up to 7 years
- Interest rates are stable for 90-day increments
- No deadline for payback (as long as you stay in the home)
- No prepayment penalties
- Non-recourse loan protection to protect you and your heirs
- Golden equity counseling to help understand every option
How do homeowners qualify for Golden Equity?
A homeowner must be age 62 or over to apply for golden equity. In addition, the home must be your primary residence. Once the application is underway, income and credit history have the biggest impact on the final terms of the loan.
Here are a few tips to secure the best rate for a golden equity line of credit.
First, make sure you have at least 70% equity in your home.
The more equity you have in your home, the better rate you’ll secure. Typically, for a golden equity line of credit, homeowners can apply for a credit line up to 70% of their home’s value. A formal appraisal is typically required to confirm a home’s current market value.
Second, maintain a good credit rating.
The higher your credit score, the better rate you’ll be able to secure for a golden equity line of credit. Pull a copy of your credit report before you apply. Verify that everything is correct and take measures to fix any errors you might find.
Third, work with a mortgage expert you trust.
It’s wise to shop around and seek out low rates across various lenders—for example, check out local banks, online lenders, mortgage brokers, and credit unions. Be careful to verify introductory rates and ask about rate caps.
As with any home loan, applying for a golden equity line of credit is a serious financial decision. Work with someone you trust who can help you reach your long-term financial goals.
If you’d like to discuss your best refinancing options, please give me a call. You can reach me directly at (408) 610-8011.
If you’re considering refinancing to access home equity, I’d love to help answer your questions. If you or a family member are over the age of 62, there are a number of advantages and benefits available. A golden equity line of credit is worth considering, along with a reverse mortgage, cash-out refinancing, or a simple rate and term refinance.
You have several options when it comes to refinancing a mortgage, accessing home equity, and planning for retirement. Feel free to schedule an appointment today or give me a call. You can reach me directly at (408) 610-8011.
We work with homeowners throughout California, Oregon, Washington and Colorado. Our goal is to help you reach financial freedom and save money on your mortgage.