Alicia cannot reliably cover $4,000 per month for mortgage and taxes on her New York beach townhouse. She is 59 with $1 million net worth, $400,000 in accounts, and $600,000 in home equity, and she has a $320,000 mortgage with no other debt. After a six-month layoff, she used $60,000 of a $100,000 emergency fund and is now in a commission-only job while aiming for a W-2 salary by June. She asks whether refusing to sell protects her joy and equity. The guidance is to avoid selling for now, but to act decisively. Options include refinancing to extend the mortgage term, though current rates may limit savings, or using a HELOC with an introductory low rate to bridge the gap.
"Why Orman lands on the HELOC Her preferred answer is option two. "If I were you, I would most likely do the home equity line of credit," Orman said, pointing specifically at Alliant Credit Union's product. She cited an intro rate of 3.99% for the first 6 months, then a variable rate that can go as low as 6.75%, at zero plus prime, offered in 28 states including New York."
Read at 24/7 Wall St.
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