House Rich but Cash Poor

Are you “house-rich but cash-poor”? In other words, you spend so much on your mortgage (and building equity) that you don’t have cash to spend on other needs. The key is to get back into financial balance. Each case is different, so do your homework and consider these actions:  Sell your house and buy (or rent) something smaller. Sounds drastic, but it frees up assets and is particularly relevant if you are close to retirement.  Refinance your current mortgage (when mortgage rates are down). Talk to John Porter at Mortgage Masters (206-954-8736 or john@mortgagemasterwa.com) to see if this option would be beneficial to you. He would love to help!  Look into a reverse mortgage (if you’re 62 or older). This lets you access your equity but there are up-front costs and you’ll want to remain in your house for the rest of your life. Talk to a financial planner to fully understand this option.