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If your wealth is tied up in your home, how can you free up some cash? A reverse mortgage is available to homeowners with mostly or fully paid-off mortgages. The monthly payments, which come from the lender to you, are not counted as taxable income. But there are mortgage taxes, and interest rates on reverse mortgages are somewhat higher than the current rate for a normal mortgage.
Are you 62+? Consider the home equity conversion mortgage, available through the FHA. An approved counselor will lay out the process and point you to a qualifying lender.
Then, here's what you should expect:
The more you borrow, and the longer the term of your loan, the heftier cumulative interest charges you'll pay.
Of course, you might sell and downsize. Not ready for that move? Think about...
If your credit score is 640 or above and you have a mortgage, consider cash-out refinancing with the FHA. This replaces your present mortgage with a larger one. The larger loan pays off your mortgage, replaces it and gives you the extra funds in a lump sum. You can be younger than 62.
Put up your home as collateral and enter a loan agreement with a close friend or relative. It's not altogether "private" — private reverse mortgages have a standard interest rate, governed by the IRS — but the rate is lower than a bank's.
A home equity line of credit (HELOC) empowers you to tap into your home equity. It's something like a credit card: there's a set credit limit. You only need to pay interest on what you withdraw. Note that HELOCs do not come with fixed interest rates.
An alternative to the reverse mortgage that can work when you need cash upfront is the home equity loan. You'll pay interest on the lump-sum amount.
If there's one thing you must have before applying for a reverse mortgage, it's patience. A reverse mortgage, like a conventional mortgage, involves a full approval process, including those pesky calls and queries about proof of your capacity to repay the loan.
But the result can make it all worthwhile.
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Antiques can bring a unique feel and vibe to almost any decor. But what happens when your antique piece doesn't exactly work in the room it was designed for? If that is the case, it may be time to upcycle it for use in a different room. Below you will find out how to turn your one-of-a-kind antique dresser into a unique vanity for your bathroom. Please note, if at any time you feel this project is a little more than DIY, contact a professional to help you through it.
You will need to find a sink that can fit within the measurements of the top of your dresser. When measuring, always be sure to measure the actual with of the base of the cabinet or dresser, not the overhang. The sink will be deep enough to pass this point, and most overhangs will be at least an inch or more.
After removing the top drawer from the dresser, trace the template that came with the sink onto the top of the dresser with a permanent marker to give you a guide for cutting. Next, use a jigsaw to follow the lines, and cut the piece of wood. Once done, check to make sure that your sink fits, and remove more if needed to accommodate.
Once you know that the sink fits, remove it, and sand down the cut area until it is smooth. Then, finish the dresser using your favorite stain or paint. After the paint or stain has dried, add a protective clear coat as this area will be affected by water.
After your dresser is completely dry, you will need to apply some clear caulking around the rim. Then place the sink on top and press down firmly. You should not need to add any caulking after placing, but make sure you can see the seal all around it.
Determine where the plumbing pipes will need to be attached to the dresser, and cut a hole to allow them to pass through. Next, connect all of your plumbing, making sure to use plumbers tape when connecting to reduce the risk of leaks.
You will want to make sure that your new vanity is tightly affixed to the wall by more than just the plumbing. Once flush against the wall, secure the dresser to the wall-in studs.
By following the few simple tips above, you can convert your favorite antique dresser or cabinet into a fully functional vanity. This can make a great option for those looking for more vanity drawers or storage in their bathroom.
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