• Question
  • I need to make repairs on my home and remodel it for a future sale, and purchase another. My husband

    Asked by a 73 year old man from Grand Rapids, MI on 1/26/2013

    I need to make repairs on my home and remodel it for a future sale, and purchase another. My husband passed away in 2011. My home will be paid off Aug 2014.

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  • Categories: Mortgage Refinancing, Downsizing/Relocation, Housing

Answers

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  • Sounds like you need a good short term loan solution, and a Home Equity Line of Credit (HELOC) from your local bank would probably be the most cost effective way of accomplishing your goal. If you can't qualify for a traditional HELOC, you can get a Reverse Mortgage with a Credit Line. Try the traditional HELOC first though, because the fees will be lower.

    Since the Reverse Mortgage will be a short term solution, I recommend the "Saver" Reverse Mortgage program, because the fees are less then the "Standard" Reverse Mortgage program.

    If your home in Grand Rapids, MI., appraised for $120,000.00, your Credit Line with the Saver program will be approximately $59,276.15. You'd use what you need from it to do the repairs and remodeling, then sell your home, pay the Credit Line off, and keep the remaining equity for yourself.

  • Login to rate this answer:   Answered on 1/27/2013
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.