A home equity loan is a type of loan taken on a home’s equity. It can be used by anyone who owns a home with substantial equity. Most people who have such equity are seniors who are in or near retirement age because they’ve been paying for that equity for quite some time.
When someone is in retirement age or have altogether retired, their income will not be as much as they were used to. This puts a halt on enjoying life’s simple pleasures such as traveling or investing in a hobby, but only if one has no access to any other source of funds.
The beauty of a home equity loan is that as a senior, you will have more reasons to look forward to retirement knowing that you’ll have something to fall back to should you have need for extra cash.
So Now You’re Retired!
Retirement gives you quite a lot of free time to do what you want such as pursue hobbies or activities that you’ve always wanted to. This is great, but hobbies and experience-enriching activities come with a price tag.
Of course some hobbies are next to being free such as watching the birds at the park, knitting, or starting a backyard garden. Learning to fly an airplane or sailing a boat aren’t. In fact, some of the most popular hobbies for seniors are a bit on the pricey side. Know more about them below!
Popular Hobbies for Seniors
Hobbies are no way frivolous. Each activity adds quality to one’s life and can improve health, both physical and mental. The most popular hobbies for seniors are as follows:
- Boating and fishing – boating and fishing can go beyond the rent of a boat or the purchase of fishing equipment. Serious hobbyists buy their boats and that can also net a bit in terms of maintenance. This is really worth it though because you’ll end up saving in the long run.
- Dancing – Unless you’ve been a dancer in your younger years, learning how to dance in retirement will mean taking a few lessons plus night outs with friends.
- Hiking – Hiking would incur some traveling if you’re not anywhere near scenic spots or hiking trails. You’ll also need proper gear like shoes and gloves.
- Hunting – just like any other hobby, hunting will need investment in both time and equipment. Guns and gear for practice and actual hunting may not be the same so you will have to purchase both and perhaps even start a small collection.
- Traveling – By far the most popular and also the most expensive hobby for seniors, traveling will incur expenses even when you only choose to go for road trips and stay with friends. Overseas travel would mean a stay in a hotel or some form of paid accommodation.
How Does a Home Equity Loan Benefit You?
Applying and getting approved for a home equity loan will allow you to tap into your equity so you can enjoy more of your golden years without sacrificing anything, especially your quality of life. It is similar to taking a withdrawal from an investment that you’ve made throughout the years. You’ll be able to take out up to the limit a loan provider will allow. You can also stay in your home until a change of ownership occurs such as when you decide to sell or pass the property to someone else.