Page 5 - Family Guide Booklet

How can home equity help your 2. ACCESS CASH RESPONSIBLY: When used properly,

loved ones build a better retirement? all of AAG’s home equity solutions are designed to
grant homeowners access to cash. In some cases (like
with a reverse mortgage loan or a cash-out refinance)
For many older Americans who find their financial situation the funds can be received in a lump sum, giving the
lacking in retirement, utilizing home equity can be an essential homeowners cash to pay for immediate expenses. Or,
part of the solution. With home equity, homeowners can with a term or tenure reverse mortgage, homeowners
achieve a number of important goals. can receive a regular stipend to supplement their
monthly income. Alternatively, by relocating somewhere
better suited to their financial situation, your loved ones
can free up funds for daily living expenses.

3. UPDATE YOUR HOME: Access to funds means there
are resources available to pay for the renovations
necessary to make the home more functional for the
years to come. This might include the installation of a
walk-in bathtub or wheelchair ramp, or the creation
of a first-floor master suite to make daily living more
comfortable. By accessing the cash in their home, your
loved ones can afford to improve their home to better
meet their changing needs.

4. PAY FOR CARE AT HOME: Access to cash also means
1. AGE IN PLACE: Studies show about 90% of seniors that funds are available to pay for in-home care, keeping
would prefer to stay in their homes as they age. your loved ones out of a nursing home and bringing
Utilizing home equity can help make this happen. By quality care to them. Studies show 70% of those over
taking a reverse mortgage loan, seniors can eliminate 65 will need some form of long-term care, and many
their monthly mortgage bill and access cash, meaning won’t have the resources to pay for it. With the right
they can afford to stay put.* Or, by refinancing, they home equity solution, your loved ones could afford the
can lower their monthly mortgage bill or access cash, care they need, whether it’s assistance with household
making their desire to age in place a reality. chores or 24-hour nursing care.

* If you simply continue to meet the loan requirements such as keeping 5. BUILD A SAFETY NET: Accessing equity can provide
up with your homeowners’ insurance, maintenance costs and property your loved ones with an important safety net. By
taxes, you can stay in your home without mortgage payments for as establishing a standby reverse mortgage line of credit
long as you live there.
to be tapped when needed, they can rest assured that
funds are available should the need arise, and they can
watch the untapped principal grow over time.

A Guide for Children and Caregivers 3