Most homeowners realize that owning real estate is a great way to build wealth over time. Property appreciates at 3-5% a year and for many, their home becomes the majority of the family’s net worth. My dad who was a realtor and real estate investor, encouraged my brother and I to buy a home as soon as we could. For me, this was age 21.
Equity as an Investment Tool
What many homeowners are overlooking is the opportunity to earn interest on their home equity. Americans are used to earning interest on their investments such as stocks, bonds and mutual funds, even money markets, CDs and annuities earn interest.
Sadly when it comes to home equity, most people earn 0% on their investment. Savvy senior homeowners however DO earn 3-5% interest on about half of their equity. This is one of the key features of a reverse mortgage.
That’s right, senior homeowners can earn 3-5% compound interest on approximately 40-50% of their home equity. The way the Home Equity Conversion Mortgage or HECM is structured, this money is guaranteed to grow and is also protected from any market correction. To learn more, let’s set up a time to visit and see if you qualify for this unique program. How soon would you like to start earning interest
on your largest investment?