How Aging Homeowners in Massachusetts Can Tap into Home Equity

80% of homeowners have tappable equity...
(Unsplash photo)

Following reports that 80% of homeowners have tappable equity, many questions were raised surrounding the potential for aging homeowners in Cape Cod to tap into their own equity. From reverse mortgages to learning how to invest in rental properties the right ways, there are a few ways to tap into this cash that can be useful before or during retirement. One of the most popular ways is actually through property tax deferral, and you’ll want to figure out how the state of Massachusetts is making it harder for senior citizens to benefit from this type of program.

What is Property Tax Deferral in Massachusetts?

While Massachusetts has a very bare bones program in place, a great model that can be seen and learned from is California’s Property Tax Postponement Program. This program, specifically geared towards residents over the age of 62 or who are blind or disabled, allows homeowners with lower incomes to defer property taxes until they die or sell their house. This requires that the homeowners own at least 40% of the equity in their home but benefits them greatly by allowing seniors to stay in their homes longer in order to build their own retirement fund or pay back other debts.

Other Options for Tapping into Home Equity

The number of reverse mortgages nationwide has tripled over the past five year, but studies show that senior homeowners in Massachusetts have yet to fully tap into the benefits they they can offer. Often used as the traditional way to tap into the economic equity that homeowners have in their properties, reverse mortgages work especially great for seniors who want to access the money tied up in their property, whether in Cape Cod or beyond. While you will accrue interest on the amount you take out, you won’t have to pay it back until you sell your home or move out, which makes for a nice lump sum of money that seniors across the Cape can use to invest in rental properties and other pursuits that can build retirement funds and savings.

Educating Cape Cod Seniors on Property Finance

Increasing income thresholds, reducing interest rates, and making applications for programs such as property tax deferral will all help aging Cape Cod citizens take advantage of the equity tied up in their homes, while continued training and education surrounding the financial benefits to reverse mortgages will also help. As with any financial decisions, it is recommended that residents speak with a qualified professional before making any huge investments in order to protect your financial and physical assets.


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