• Question
  • I should sell my house and use that money to live.

    Asked by a 77 year old woman from Winter Haven, FL on 6/2/2014

    I should sell my house and use that money to live.

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  • Categories: Downsizing/Relocation, Housing

Answers

  • Steve 

    Steve 
    NewRetirement

    San Francisco, CA

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  • Based on the information you provided it looks like you have limited savings and that you are roughly balancing your expenses against your social security income. The good news is that it appears you have a significant amount of home equity. It does not appear that there is a lot of room to cut your expenses further.

    Some options to consider are:
    1) Try to get a part time job to augment your income
    2) You could sell your house and downsize or rent - which would free up some of your home equity. There will be transaction costs associated with selling your home and buying another one or renting.
    3) You could get a reverse mortgage and use the line of credit option to subsidize your living expenses - this option let's you stay in your home, have no mortgage payments and your line of credit grows over time. There are also transaction costs with this option.

    Regardless - its worth talking to a fee only financial advisor about your situation.

    Hope this is helpful.

  • Login to rate this answer:   Answered on 6/3/2014
**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.