Remodel for Your Future with a Home Equity Loan

Healthy living and innovations in healthcare are enabling Americans to live longer than ever before. By 2010, one in three of us will be over 50. Therefore, forward-thinking homeowners would be wise to revamp their environments to take advantage of new home ideas for easier senior living.

If you've ever suffered a broken foot or severely sprained ankle, you know how difficult it can be to get around. Stairs are impossible to negotiate, while crutches make it difficult to open doors or prepare meals. And don't even think about getting into the bathtub for a shower.

People face similar kinds of challenges as they age. The prescient homeowner will anticipate these changes, and take steps to remodel a home before it's imperative.

There'll be some changes made

Large companies don't see people growing older-they see potential new markets. That's why many of them are designing a new generation of appliances. GE, for example, recently put on the market a walker-friendly refrigerator with French doors, and front-loading washer/dryers that sit atop pedestals, making them easier to load. New generation dishwashers use bottle dispensers for detergents, minimizing the need to constantly bend and refill.

Builders are incorporating wheelchair-friendly doorways and hallways into new designs. But if your home is already standing, that may be impractical. However, there is a multitude of ways to adapt your home to make it senior-friendly. You can replace carpeting with wheelchair-friendly tile and wood floors. Or remodel your kitchen to limit the number of hard-to-reach upper cabinets, and add pullout drawers. Other simple innovations include lower closet rods, higher toilet seats, and walk in spas/showers with seats.

In case you think this is a waste of money, real estate brokers estimate that these types of improvements can add 20 percent to the price of your home.

Financing your future

Anticipating the future is clever, but it can also be costly. Forward-thinking homeowners can turn to their properties for financing-a home equity loan or home equity line of credit (HELOC) can easily provide the funds.

A home equity loans works like a traditional mortgage-you receive a fixed-rate for a fixed term. Closing costs are minimal, and if your credit is excellent, you can find a loan without closing costs. The trade-off is that your interest rate will be slightly higher than with a traditional mortgage refinance.

Your best option may be the HELOC. The line of credit would enable you to pay as you go, avoiding interest on funds until you actually use them. The closing costs (or lack of them) would be similar to a traditional home equity loan. But your interest rate would be adjustable, and could creep higher if that's the direction of prevailing rates.

Don't wait until a broken bone teaches you the limitations of your home. If you act before you need the help, your senior-friendly environment will be ready for your changing needs. And, when it's time to sell, your investment may pay off in a very big way.