More often than not, people’s homes are their most valuable asset. And, in retirement your home can play a significant factor in your overall planning strategy.

It may be advantageous for you to refinance your mortgage loan prior to retirement. Depending on your current financial situation, you may be able to refinance to a 10-15-year loan, which can help in reducing your interest rate. If you can afford a 10-15-year fixed rate mortgage, then you can pay off your mortgage prior to your retirement date and be mortgage free in retirement. Paying more now will be worthwhile when you have no mortgage debt to worry about later in your retirement budget.

You may also find that a reverse mortgage has benefits to you and your retirement. However, taking a reverse mortgage on your home is a big decision so you need to think it through with your family and trusted financial professionals. With a reverse mortgage, you give your bank a mortgage on your home and receivable monthly payments until you die, move out, or turn 100 years old. While this sounds like a great plan, a reverse mortgage may not be worth the risk. Inflation can impact the purchasing power of your reverse mortgage payments, and the risk for default on your reverse mortgage is at an all-time high when you combine weak purchasing power with the potential for unexpected bills, medical expenses, and home repairs that may arise in this time frame. If you are considering a reverse mortgage, be sure that your spouse’s name is included on the mortgage and that you’ve taken all of the risks into account.

Another way your home can be a potential retirement asset is if you take out a line of credit. Even if you don’t plan to borrow on it, consider a home equity line of credit as it may play a factor in your overall planning strategy for retirement. As long as you have a plan to pay the line of credit off shortly after it’s used, a line of credit can help those who need quick cash to be used immediately. You don’t have to use it, but it can give you a liquid cushion if there’s ever a need for one.

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So, when you pull in your driveway tonight, take a different look at your home and picture your life in retirement. Looking at your home as a retirement asset may help in your overall planning strategy for the future. In any case, you’ll want to schedule your complimentary, no obligation review to discuss whether or not your home will have specific benefits to your life in retirement.