Access reverse

If you are in your 60s, chances are you have some knowledge of reverse mortgages.

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.

By MICHAEL COIT

Facing foreclosure on her Sebastopol home and Petaluma rentals, Anna n-ha(cq) Millee used a reverse mortgage to pull cash out of the properties and pay off her lenders.

There also was enough money left to improve the income property. She plans to eventually put tenants back into the units and restore lost income that led to her financial dilemma.

“I was in total panic. Right now, this meets my needs completely,” she said.

Reverse mortgages have gained popularity as retirees find turning equity into cash can meet different goals in their lives.