It's pretty straightforward. We were able to look at the other products that we were considering along with Hometap in these different scenarios and this just came hands-down to be the best.
How Paul Funded Home Repairs to Prepare for Retirement
For Paul and his wife, retirement isn’t too far down the road, so they’re thinking strategically about their financial plans. They anticipate moving within the next 10 years, but until then, they have some home repairs and updates they want to make now — before they’re on a fixed income.
“We wanted to stay here for a while and we wanted to have access to some of that equity that we have quite a bit [of] in the house and we wanted to be able to make some [home] improvements, and help assist our son who’s disabled,” Paul explained.
They knew they’d built enough equity up in their home to fund their goals, but with all of the different financing options available for accessing their equity, their work was cut out for them.
“We looked at the reverse mortgage options […] we looked at a home equity line of credit; we looked at quite a few different options and went through quite a process of number crunching. But for our situation, in our home, for how much equity we have, how little we owe against a low interest mortgage payment […] when we crunched the numbers, Hometap just came out making so much more sense.”
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For Paul and his wife, it was the structure of the Investment, the terms, and his Investment Manager that made their decision.
“I really like the design of this product,” Paul said. “I love to pay that fair percentage when the home sells, and that’s a pretty cool thing. It’s not like a compounding interest, like a reverse mortgage. And down the road, somewhere in that 5-to-7-to-10 year range, we will sell the home and we’re going to downsize and Hometap is going to get their share of the Investment and we are going to be 7, 10 years down the road in much better shape.”
As Paul describes it, there were many complexities that they needed to factor into the equation before making their decision. That’s where their dedicated Investment Manager was most valuable.
“This young man was incredible. He was helpful, informative, never pushy, never pressing us,” said Paul. “I kind of drug [sic] him through the wringer because I had complex situations to figure out our financial future that included complexities of a severance package, complexities of our Social Security income that we’ll be drawing, complexities of our IRA that we will be opening and accessing and how to blend those things to create the financial future over the next decade that we’re hoping to do. So he was super patient with all that.”
After completing their Application and receiving an Investment Estimate, Paul and his Investment Manager scheduled a home appraisal and the signing. Paul and his wife received their funds and set out to accomplish the renovations they’d been planning.
“I have a great amount of peace about our financial future now, about the way we have designed it for my wife and I and for my kids, my family. I’m just really very, very happy that I found this.”
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*Disclaimer: This homeowner was compensated for providing Hometap with an interview about his Investment experience.