Borrowing Tips for Seniors

Released  October 16, 2006
By Megan Greuling

CHARLOTTE, N.C., October 16, 2006 – After years of saving and careful planning, seniors finally get to enjoy what they have earned. However, financial planning doesn’t stop in these years because important budget adjustments need to be made for issues such as rising health care costs and fixed incomes.

As part of its ongoing mission to empower borrowers, LendingTree offers the following tips to help seniors manage financial obligations during retirement.

1. Find smart ways to utilize a lot of home equity. A home can be the most important financial resource for seniors. Many people may find they have little cash but own a very valuable home. Evaluate your home’s equity and if rates are low, there can be opportunities to make investments that could earn you more than you would be paying in interest and fees.

2. Continue to budget and plan effectively. Budgeting and planning are still critical functions to maintain the lifestyle you want. Unexpected issues can arise where you may be forced to allocate additional funds that you may not have planned on, such as an immediate health expense. By continuing to plan and save for emergencies or unexpected situations, you will be safe from dramatic changes to your budget.

3. Consider a reverse mortgage to turn home equity into cash. Reverse mortgages allow you to borrow against your home and turn your equity into cash. With this type of mortgage, you receive regular payments from the lender without making loan payments in return. Before deciding on a reverse mortgage, you need to understand that the costs are often high, and frequently the amount you can borrow is significantly lower than your home’s value.

4. Consider moving into a smaller home to create more cash. It is the easiest advice and often the most effective. If you are struggling with how to juggle a fixed income, this could be a great way to supplement it. Additionally, it could free up money to continue to save or spend as you please.

For more borrowing tips for seniors, please visit the LendingTree Guide to Smart Borrowing.

About LendingTree, LLC

LendingTree, LLC is the nation’s number one online lending exchange, providing a marketplace that connects consumers with multiple lenders that compete for their business. Since inception, LendingTree has facilitated more than 20 million loan requests and $152 billion in closed loan transactions. LendingTree provides access to mortgages and refinance loans, home equity loans/lines of credit, auto loans, personal loans, and credit cards via and 800-555-TREE.

Launched in 1998 with headquarters in Charlotte, North Carolina, LendingTree, LLC is part of IAC Financial Services and Real Estate, an operating business of IAC/InterActiveCorp (NASDAQ: IACI), which also owns or operates LendingTree Loans, LendingTree Settlement Services, LLC, GetSmart®,®, Domania®, and iNest®.