6 Ways a Get Money from Your Home Without Selling | Home Design Find

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6 Ways a Get Money from Your Home Without Selling

Whether you’re looking to get some money for a home renovation or want to pad your retirement fund, you can get money from your home. You can either tap into the equity of your home in several ways or use your home itself to earn you extra money. Keep reading for six ways that you can get money from your home without selling it.

Cash-out Refinance

When you have a high percentage of equity in your home, you can do a cash-out refinance to pay off your current loan and give you a lower interest rate. You get cashback from the refinance because the new loan is above that of your previous payoff amount. You can use this money to perform major home renovations or remodeling projects to increase the overall value of your home. If you prefer, you can tuck that money away for a rainy day or retirement.

Reverse Mortgage

If you’re approaching retirement age and feel that you need to put a large chunk of money in your account, a reverse mortgage could be the best choice for you. A reverse mortgage is called such because it works in nearly the exact opposite way of a traditional mortgage in that a lender pays the homeowner a dollar amounts equal to a determined percentage of the equity in their home.

This does not mean that the lender then owns the home. The homeowner continues living in the home until it is sold when they either pass away or move to a long-term care facility. At which time, the loan will come due and either the homeowner or their heirs will repay the loan.

Because of the unique nature of a reverse mortgage, there are strict requirements that must be met for a homeowner to qualify. Requirements include but are not limited to:

  • The borrower must be at least 62 years old.
  • The borrower must own at least 40% equity in the home.
  • The home must be the primary residence (vacation homes and rental properties aren’t eligible).
  • The borrower must meet with a Department of Housing and Urban Development (HUD)-approved reverse mortgage counselor.

You can get an estimate of interest rates and dollar amounts by using a reverse mortgage calculator by All Reverse Mortgage.

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Rent Out a Room

It’s not uncommon to end up with more homes than we need as we get older. You can put that room to work for you by renting it out to a tenant. This is a great way to bring in extra money as you can often charge a few hundred dollars for someone to rent a room by including utilities on top of the initial rent charges.

The room you rent can be as small as a single room on one side of your home or as large as your basement. Assess what you have available and get it ready to rent. Often people who rent out rooms or basements in homes understand the unique situation in which they live and are courteous to you as the landlord and fellow resident.

Allow Crews to Film at Your Home

If you’ve ever noticed that commercials, TV shows, and movies are often filmed at some of the same locations, it’s because these homes have been registered as a filming location. You can get your home on a list to be paid to allow filming by registering with advertising agencies and film studios. Share with them what makes your home unique and why they would want to film there. It might not be the next popular location to shoot, but it could bring in a nice check for a single use.

Grow a Garden

If you’ve ever been to a farmer’s market, it doesn’t take long to realize that many of the people there aren’t actual farmers. They’re average people who grow fruits and vegetables in their yard and are looking to make some money off their harvest. You can do the same thing. Turn a corner of your yard into a vegetable garden that you can harvest throughout the year and take to a farmer’s market.

Should you decide that the farmer’s market route isn’t for you, a garden can still be beneficial. By growing and picking your own vegetables, you can save hundreds of dollars each year on buying produce at the grocery store. Not only is this an excellent way to cut your grocery bill, but you also know exactly where your fresh vegetables come from before they make it to your kitchen table each day.

Home Equity Line of Credit (HELOC)

When you take out a home equity line of credit (HELOC), it’s much like opening a credit card that has a credit line equal to a determined amount from the equity of your home. A lender will make those funds available to you to use. Rather than paying off a loan, you can continue to use the HELOC as you repay the debt. This means that the line of credit functions more like a credit card than a loan as the money will continue to be available.

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