1. Home
  2. Home & Garden
  3. Home Buying / Selling
photo of Elizabeth Weintraub

Elizabeth's Home Buying / Selling Blog

By Elizabeth Weintraub, About.com Guide to Home Buying / Selling

Reverse Mortgages Can Tap Equity for Retirement

Wednesday February 28, 2007
Retirement isn't the only reason to get a reverse mortgage. Some home owners take out reverse mortgages to pay off debt, make repairs or go on vacation. But the most common reason to consider taking out a reverse mortgage is to supplement retirement income.

If you have enough equity in your home and are over the age of 62, you can probably qualify for a reverse mortgage. You don't even need to own your home free and clear of any mortgages. Plus, the lender will pay you a set monthly payment for as long as you live in your home.

The fees to obtain a reverse mortgage are high compared to those for other types of loans. And it's possible that upon your death, there will be no equity left for your heirs. But it's a good solution for many home owners who need to increase monthly cash flow.

Ready to Read More Articles? Click below:

©Big Stock Photo

Comments

February 28, 2007 at 11:27 am
(1) Athol Kay says:

Reverse Mortgages disturb the hell out of me. I know of people whose parents openly talk about getting these things and riding cruise ships until all the money is gone.

March 3, 2007 at 9:27 am
(2) Rocco says:

I think this is a great idea. People are living longer than ever before and unfortunately many people do not plan properly for retirement. This is a way for home owners to use the rapid increase in their home to their advantage. Retirement is no time to worry about money.

March 4, 2007 at 11:01 am
(3) homebuying says:

What’s wrong with parents riding the cruise ships until all the money is gone? It’s THEIR money, Athol. Can’t they do what they want with their own money? I say more power to them!

Leave a Comment

Line and paragraph breaks are automatic. Some HTML allowed: <a href="" title="">, <b>, <i>, <strike>

Explore Home Buying / Selling

About.com Special Features

Home Allergy Center

Banish mess, reduce allergens, and maintain a clean, healthy home. More >

Home Improvements Made Easy

Inspirational ideas and expert tips to help you pull off your next DIY project. More >

  1. Home
  2. Home & Garden
  3. Home Buying / Selling

©2009 About.com, a part of The New York Times Company.

All rights reserved.