Fitzsimons Credit Union

rss

Fitzsimons Credit Union blog


Home Equity Is Not a Retirement Plan

Home Equity Is Not a Retirement Plan

Paying off a house is a retirement goal for many people, but don't count on equity to compensate for insufficient savings.

If you have a low-interest home loan, shortchanging your retirement contributions to pay it off early usually isn't a good idea. Here are some of the limitations of relying too much on home equity in retirement.

  • *What happens if you need to go to a nursing home? Selling your home to fund a move to a nursing home only works if your spouse can arrange for other accommodations or is moving into the home with you. Also, your equity may not be enough to cover the costs.

  • *Equity isn't fixed. Home prices rise and fall, and if you're not maintaining your home, that could also affect its value. Plus, translating equity into cash takes money and time. 

  • *The cost of selling. Commissions generally eat up 6% of the final sale price of your house. On top of that, you have possible capital gains taxes. While $250,000 (or $500,000 for couples) of capital gains is tax-free if you meet the requirements, years from now inflation and appreciation could make that amount seem meager. And if you have to sell quickly due to an emergency, you might have to accept a lower offer than you'd like.

  • *Beware of reverse mortgages. This type of loan gives you money to live on for the rest of your life based on the equity in your home, and it allows you to continue living there. But you typically get considerably less than what the home is worth, and the loan becomes due if you ever move.

    There are many cases when a home equity loan can be beneficial to your financial needs and can even help you increase the value of your home. If you are in the market for some home remodeling, look at using a Home Equity Line of Credit Loan (HELOC) to help you finance the project. Now is a great time to take out a home equity loan since Fitzsimons Credit Union is currently offering our Home Equity Line of Credit (HELOC) Special! Receive an introductory rate of 1.99% APR* through December 31st, 2017! Starting on January 1st, see rates as low as 3.50% APR*. You can also use a HELOC for any other worthwhile purpose such as a higher education or a new car- and the interest you pay may be tax deductible*. Apply online or Speak to a Financial Consultant at 303-340-3343 for more information. 

    *Promotion expires 06/30/2017. APR = Annual Percentage Rate. New money only. Must bring in this ad to receive promotional rate. Consult your tax adviser regarding potential tax savings. 1.99% APR introductory rate valid as of 4/1/2017 and locked until 12/31/2017, then set at the Wall Street Journal (WSJ) Prime Rate plus or minus a margin, adjusted monthly. Regular Home Equity Loan APR may be adjusted based on credit qualifications, including verification of income, collateral value, occupancy status and credit worthiness with a floor of 3.50% and a ceiling of 18.00%. Property and/or flood insurance may be required. Finance charges and closing costs may apply. Nothing herein is or should be interpreted as an offer or commitment to lend. Offer, rates, terms, and conditions subject to change at any time. Other restrictions may apply, including membership eligibility. Please enter HELOCpromo17 as promo code when applying online.  Fitzsimons Credit Union is an equal housing lender, NMLS# 459085. Must be a Fitzsimons Credit Union member to participate. To become a member-partner at Fitzsimons Credit Union you must meet at least one of the following criteria: live, work, worship or attend school in Aurora, Watkins, Bennett, Strasburg or eastern Centennial; be active or retired military; be a family member of those who meet the above criteria; or you or a family member work for any of our Select Employer Groups (SEGs). A minimum opening share (savings) deposit of $5 and New Member fee of $5 are required. Federally Insured by NCUA.

     




    Comments are closed.


    Tags

    equity mortgage skimming telephone scam 104EZ 1st home 1st Mortgage 2nd Mortgage a partnering credit union accounts anniversary anschutz ANSCHUTZ CAMPUS anschutz campus credit union anschutz credit union anschutz credit unions anschutz financial institution apps ATM atown AURORA aurora community Aurora Credit Union aurora credit unions auto auto loan auto loans AUTO PROMO auto promotions auto purchasing AUTO REFINANCE black friday borrow budget budgeting budgets building credit building teen credit business accounts buying a house buying a new car buying an old car calls car buying CAR DEALS car financing car refinance CARBUYING carbuying for teens Cardvalet cars CARS IN AURORA cars to fit your family checking Children savings accounts childrens hospital Childrens Hospital Colorado childrens miracle network childrenshospital CHRISTMAS MONEY christmas presents cmn college college affordability Colorado Comitis Crisis Center Community community credit union Community Involvement Aurora conserve credit credit building credit card credit history credit report credit score credit union Credit Union Leaders credit union strong Credit Unions for Kids credit unions in aurora CUNA cutting costs cybersecurity data breaches debt debt-payoff Denver Area Credit Union deposit diy do it yourself Dreams Thrive Here drive-in education Emergency Funds equifax Executive Team experien extra income Extrasbenefits Fin Lit finance a business finances financial education financial fit financial goals financial literacy Financial Literacy Classes financial mistakes financial planning Financial resources for parents FINANCIAL STABILITY financing your vacation finding the right car for you Fitzsimons fitzsimons army hospital FITZSIMONS CREDIT UNION Fitzsimons Credit Union CEO fraud free credit report free tax help getting ready to move gift cards Giving Back goals Grocery Cart Races h&r block h&rblock heloc Helping the homeless hispanic outreach historic aurora history holiday accounts holiday budget HOLIDAY LOAN HOLIDAY SAVINGS holiday shopping' holidays home home buyer Home buying home improvements home investing Home Loans home selling homebuying homebuying mistakes housing how to prepare house to be sold how to save money on auto loans identity identity theft ilovemycreditunion income tax income tax return insurance interest rates Internal revenue service International credit union day invest IRS Juntos Avanzamos Juntoz Avanzamos Keller William:5280 Home Team kellerwilliams lastpass leasing a car library LikeABankButBetter line of creditt loan loans LOCAL Making a Difference making your money work for you member appreciation event. member benefits Millennials house mobile app mobile deposit money mortgage Mortgage Loan mortgage refinance moving my tax return national credit union month Nerdwallet new car new home new vs. old car NEW YEARS FINANCIAL RESOLOUTION new years resolution new years resolutioons online online learning and fun online safety Partnering Credit Union phone photo deposit ProtectMyID rainy day fun read realtor advice red rocks REFINANCE representative retirement safety SandraNeves save SAVE FOR THE HOLIDAYS saving Saving for a vacation SAVING HABITS saving money SAVINGS savings for children savvy saver accounts scam Scholarship scholarship grants school security security breaches selling your home selling your house senator Small Business small business loans small houses smart savings smartphone southlands Southlands credit union spanish speaking stanley marketplace starting a business stolen identity student loans SUMMER SUMMER DEALS summer vacation taming the debt dragon TAX HELP tax prep software Tax refund Tax return tax season tax tips Taxes teachable moments teaching children about money teen accounts teen debit cards teen scholarships thanksgiving thanksgiving dinner This Is Aurora TOGETHER WE ADVANCE TURBOTAX university used car used car loans Vacation vacation savings vacation tips VEHICLE REFINANCE Von Willebrand Disease VP of Finance wealth winter is coming WITHHOLDINGS Youth youth month youth savings accounts

    Federally insured by NCUA |  Equal Opportunity Lender  |  © 2019 Fitzsimons Credit Union  |  303-340-3343  |  1-800-933-5839

    Fitzsimons Credit Union recognizes the importance of ensuring our website is accessible to all users. We are in the process of redesigning our site in accordance with the requirements of the Americans with Disabilities Act (ADA) and will be publishing updates to the website within the next several months so that our content is readable via non-graphical, text-only browsers. We appreciate your patience during this process.

    FitzsimonsCU.com links to third party websites that may not be controlled or owned by Fitzsimons Credit Union. Fitzsimons Credit Union may not be responsible for the content of the alternate web site neither does it represent either the third party nor the member if the two enter into a transaction. Fitzsimons Credit Union does not represent either the third party or member if a transaction is entered. Privacy and security policies may differ from those practiced by FitzsimonsCU.com.

    NMLS #459085
         
    Shared Branch Logo  CO-OP ATM Logo Centennial Logo
     

     

      
     

    AFF NCUA LogoEqual Housing Logo      

    Please Note:

    You are now leaving the Fitzsimons Credit Union website. We are not responsible for
    the privacy practices of any other web site. We encourage you to read the privacy policies
    of any web site you access, especially if individual identifying information is being collected.

    Fitzsimons Credit Union does not represent either the third party or member if a transaction is entered.

    Continue Cancel

    Don't ask again