Reverse Mortgage Can Be A Lifeline When Expenses Exceed Income BY James Watt
If you are in your 60s, chances are you have some knowledge of reverse mortgages.
A reverse mortgage can be a financial lifeline for retired homeowners who have more expenses than income.
With CD interest rates in the 2 percent range and stock market performance erratic, many homeowners are finding themselves financially squeezed.
But before signing up for a reverse mortgage, be sure you carefully weigh your options.
Homeowners wanting to tap their home equity generally have three options. They can sell their residence and downsize to a smaller home or apartment, take out a home equity loan or use a reverse mortgage.
To qualify, a homeowner generally must be at least age 62.
A reverse mortgage allows the homeowner to convert their home’s equity into cash and use it for any purpose. The homeowner takes the loan from a bank.