Sponsored Content: As we age, it can become more difficult to navigate around the house safely. A home not properly equipped for seniors might wind up becoming hazardous.
Making elder care upgrades can be expensive, but fortunately, you can tap some of your hard-earned equity to cover the costs with a cash out refinance from Discover® or another home lender.
Below, we’ll explain how cash out refinancing loans work and how to use one to prepare your home for elder care.
What is a Cash Out Refinance?
A cash out refinance is a new mortgage loan that’s larger than your existing one. You pay off your old mortgage with the new one, then pocket the difference in cash.
For example, you might have a $100,000 outstanding mortgage balance on a home worth $300,000. If you got a $150,000 cash out refinance, you’d refinance the old loan and keep the extra $50,000 from your equity as cash.
Getting a Cash Out Refinance
Getting a cash out refinance is like getting a purchase mortgage.
You’ll need to shop around for a lender, then apply by submitting various documents providing your income, debts, assets, and other financial information. You’ll also undergo a formal credit check.
If approved, you’ll close on the loan and pay any related closing costs. You might find with some lenders like Discover Home Loans that no cash is required at closing—it’s important to consider what various lenders offer and decide what works best for you.
Funds will then be disbursed to pay off your old loan and prepare your home for elder care.
Using the Cash Out Refinance to Prepare for Elder Care
A cash out refinance can get you a significant sum of money depending on how much equity you have available in your home. Here are some smart ways to use it to equip your living space for elder care:
Install Handrails or Chairlifts
Seniors are at an increased risk of dangerous falls, especially in areas like bathrooms.
Handrails are an excellent investment to make here. If the floor is slippery, the senior can grab onto the rail.
As for the stairs, you might consider investing in a chairlift. This can be an even safer option than an existing handrail, but it will likely be more expensive.
Put in Adequate Lights
Be vigilant about stocking up on light bulbs with your cash out refinance proceeds. If someone needs to use the bathroom in the middle of the night, having enough bright lights minimizes their chances of tripping over something.
People tend to lose some of their grip strength as they age, making it tougher to open things like ovens or cabinets. Finding ways to make these easier to open can prevent a potential hazard.
Equipping a Senior-Friendly Tub
The bathtub and shower are significant areas of concern since they can often be difficult to get in and out of even without being wet. If you have the money, buying a brand new senior-friendly tub might be a wise choice.
Prep Your Home for Elder Care With a Cash Out Refinance
Equipping your home for elder care isn’t cheap, but a cash out refinance can make things much more affordable.
You’ll be able to minimize your out-of-pocket costs by tapping into your home equity without sacrificing a home environment that’s safe for you or your loved ones.
About Discover Home Loans
Discover Home Loans provides home equity loans and mortgage refinance options with a range of benefits for qualified homeowners. Find options that fit within your budget at discover.com/home-loans. © 2023 Discover Bank, Member FDIC | NMLS ID 684042