How to pull money out of a property without selling it - Part 2
A reader previously asked:I want to pull some equity out of my San Francisco property and pay as little as possible or no taxes at all. Is there a way to do this?
Our answer:
In addition to the suggestions we made in our post for Wednesday, June 21, 2006, a reverse mortgage may work well for older citizens (62 or older) who have a lot of equity in their property. This vehicle allows homeowners to convert part of their home's valuye into cash. Although the home equity line of credit also provides cash with out tax consequencews, they still require payments of at least interest only. In a reverse mortgage the money goes the opposite direction... to the people who need it! Be aware, this plan works well only if the homeowner expects to stay in their home for at least 5 years. Reverse.org has a list of Frequently Asked Questions (FAQ) with lots of information.
Go to the Reverse Mortgage Internet site to find a reputable local reverse mortgage originator.
- Janis Stone
posted by SFResidence.com @ 2:19 PM
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