(Fox Business) - Half of US homes with mortgages are 'equity rich,' despite difficult housing market and many see home equity as a solution, report says.
The adult children of retirees are worried about the impact that high inflation is having on their parent's retirement savings, a recent survey said.
Sixty percent of respondents expressed concern that inflation is hurting their parents' financial situation and many said they are afraid that their parents won't be able to afford retirement in later years, the survey from American Advisors Group (AAG) said.
Amid this apprehension over whether their parents will have enough retirement savings, a growing number of adults have embraced the idea of using their parents' home equity as a financial solution, the survey said.
"The retirement savings crisis is real, and many Gen X adult children are telling us that caring for their parents will be extremely difficult and potentially unattainable," Eddie Herda, AAG's vice president of brand strategy, said in a statement. "There is interest in finding financial solutions to help fund their parents' later years and our data show that the majority are now in favor of utilizing their parents' home equity."
If you're interested in tapping your home equity, you could consider a cash-out refinance. You can visit Credible to find your personalized interest rate without affecting your credit score.
By Nora Colomer
December 20, 2022
