Owning a home is one of the greatest investments you’ll make in your lifetime. Owning that home for a long period of time, however, may just ensure that you get the most out of your prior investment. According to a recent study by Urban Institute, leveraging the equity of your home at an older age can significantly grow your retirement funding, as retirees can then sell their homes for a profit or use their home equity line of credit to increase personal funds. After all, the housing market is one of the nation’s greatest investment arenas, making older American homes highly valuable assets in today’s market.

“Not only does a house meet the basic needs of a shelter, but it’s an asset that typically can be used to build wealth as homeowners pay down their mortgages,” reported the study’s researchers. “In fact, many retirement security experts argue that the conventional three-legged stool of retirement resources—Social Security, pensions, and savings—is incomplete because it ignores the home.”

Additional studies show that since the recession ended in 2012, homeowners aged 65 or older have increased their retirement income by nearly 50 percent—or up to $49,000—by simply borrowing a home equity line of credit, selling their home for a profit, or taking out a second mortgage or cash-out refinance.  

Overall, no matter which method you choose to apply your leveraged home equity, you are bound to significantly grow your retirement funds. For more information on the benefits of homeownership, or for more details about home financing, contact one of our mortgage specialists today and download The Ultimate Guide to Homebuying & Financing.