The Season of Giving: How You Can Use Home Equity to Help Loved Ones

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The holiday season often brings a special focus on family, connection, and the joy of giving. As we gather with those we care about most, it’s only natural to think about how we can support them—not just during the holidays, but for years to come.

For many older homeowners, decades of hard work have built something truly valuable: home equity. By tapping into this powerful financial resource, you can unlock new opportunities—not only for yourself, but for your children, grandchildren, and loved ones.

There are many different options for accessing your home equity, depending on your individual goals and circumstances. Reverse mortgage programs like the FHA-insured home equity conversion mortgage (HECM), or proprietary options like Platinum by Longbridge, allow you to convert a portion of your home’s equity into cash—without having to make monthly mortgage payments. Of course, as with any mortgage, meeting loan obligations, including keeping up with property taxes, insurance, and maintenance, is required. Another powerful option is HELOC For Seniors®, a first-of-its-kind home equity line of credit (HELOC) designed specifically with older homeowners in mind.

With each of these options, the funds you receive can be used however you wish. Many homeowners use them to supplement their own retirement income—while others take joy in helping loved ones reach milestones or achieve financial stability. And often, it’s possible to do both!

With the holiday season upon us, let’s explore a few meaningful ways you can use your home equity to create a lasting legacy of support.

Support Their Educational Goals

Education is one of the most meaningful gifts you can give, opening doors to new opportunities and brighter futures. Yet with the rising cost of tuition, many students and their families face a heavy financial burden.

Whether you have a grandchild preparing for college or an adult child returning to school to advance their career, tapping into your home equity can provide the financial support they need to pursue their goals.

From major expenses like tuition and room and board to smaller yet essential costs like books and other academic supplies, your help can ease their financial stress and allow them to stay focused on what matters most—their education. And when the day comes to watch your loved one cross the graduation stage, you’ll share in the tremendous pride of knowing you helped make that moment possible.

Contribute to a Down Payment on a New Home

For many young adults and families, the biggest hurdle to homeownership is saving enough for a down payment. In today’s housing market, that goal can feel especially out of reach. By using a portion of your home equity to help with a family member’s down payment, you can make a meaningful difference—turning the dream of homeownership into reality for your children or grandchildren.

This type of gift can have a lasting ripple effect that can last for generations. Not only does it give your loved ones a stable place to call their home, but it also helps them begin building their own equity—laying the foundation for long-term financial security. It’s a powerful way to create a legacy of stability and opportunity that extends far beyond the initial gift.

Help Fund Meaningful Home Renovations

Your home equity can also be used to improve the living spaces of your loved ones, whether they live on their own or share a home with you.

For many families, multigenerational living has become an appealing option, offering the chance to spend more precious time with your loved ones while maintaining everyone’s comfort and privacy. In fact, according to an AARP study, 62% of adults would consider building an accessory dwelling unit (ADU) on their property for a loved one or friend who needed extra assistance or a place to stay.1 Some options for adapting your current space include converting a basement into a comfortable apartment or adding on a bedroom suite.

Alternatively, you could gift a much-needed renovation on your loved one’s own property. This could be anything from a modern kitchen remodel to the installation of smart home technology that adds convenience to their daily lives. You could also help them make forward-thinking modifications to their home, ensuring it remains safe and accessible for them as they get older—a thoughtful gift that prioritizes their long-term well-being.

Help with Rising Healthcare Expenses

As we age, staying on top of health becomes a top priority, but unfortunately it can also become a source of significant financial strain. Healthcare costs can be unpredictable and difficult to plan for, especially for those on a fixed income. Funds from your home equity can provide a crucial safety net, easing the financial burden of medical care.

You can use the proceeds to help pay for professional caregivers or in-home nurses, allowing an aging family member to receive the support they need in the comfort of their own home. Or, you can help a loved one afford a senior living solution if they need more care than can be accessed at home. This assistance can also cover out-of-pocket costs for prescriptions, specialist visits, or necessary medical equipment, ensuring your loved ones have access to the best possible care without compromising their financial security.

Establish a Growing Line of Credit for Future Needs

Life is full of surprises, and not all of them are welcome. Unexpected expenses, from major home repairs after a storm to sudden medical bills, can arise without warning for you or your loved ones. An adjustable-rate reverse mortgage offers a flexible solution: a growing line of credit.2

With this option, you can set aside a portion of your home equity funds in a line of credit that you can draw from as needed. The unused portion of this credit line grows over time, meaning you have access to more funds in the future. This can provide an invaluable financial cushion for you and your loved ones, offering peace of mind that resources will be available to handle whatever the future may bring.

Set Aside Future Equity with Platinum Preserve®️3

If your goal is to access a portion of your home equity now, while still leaving a lasting financial legacy, Platinum Preserve® by Longbridge could offer an ideal solution. This proprietary reverse mortgage option allows you to withdraw funds to meet your current needs—while preserving part of your home’s equity for your heirs later.

 With Platinum Preserve®3, you can enjoy the freedom and flexibility of your home’s equity while safeguarding a portion of it for the future. It’s a meaningful way to balance your current needs with your long-term wishes, ensuring your loved ones benefit both now and for generations to come.

A Legacy of Love and Support

The greatest rewards of giving aren’t measured in dollars—they’re felt in the heart. Using your home equity to support the people you care about most can bring a deep sense of purpose and fulfillment. It allows you to witness the positive impact of your generosity firsthand and share in your loved ones’ joy and success.

Beyond the emotional benefits, leveraging your home equity offers incredible financial flexibility. It transforms an asset you’ve worked hard to build into a dynamic tool that can help you and your family achieve a wide range of important goals. From education and homeownership to health and long-term security, the ripple effects of your giving can last for generations.

If you are interested in learning more about how you can leverage the power of your home equity to help you achieve your goals, our knowledgeable team is here to help. We’re committed to responsibly helping older homeowners reshape their financial future by educating them on home equity solutions. Contact our team today!

¹ https://www.aarp.org/home-living/home-and-community-preferences-survey-2021/

2 Line of credit option is only available for adjustable rate reverse mortgage products. If part of your loan is held in a line of credit upon which you may draw, then the unused portion of the line of credit will grow in size each month. The growth rate is equal to the sum of the interest rate plus the annual mortgage insurance premium rate being charged on your loan.

3 Platinum Preserve® is an option available in certain states which, if chosen, allows borrowers to preserve a percentage of the equity of the property, under certain circumstances, at the conclusion of the loan. Subject to terms and conditions of the Platinum Preserve® program. Please contact Longbridge Financial LLC for more details.

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