Retirement is all about having a good time, but it's hard to have fun if you don't have enough money to do the things you love. There's the appeal of a reverse mortgage, tapping into your home's equity to supplement your income, but it's not all roses.
To see some drawback, just look at the results from a reverse mortgage calculator recommended by HUD. The interest rate is higher than most would pay for a regular mortgage.
Another thing to note in the higher fees you'd pay as oppose to a typical refinance on a similar size loan.
If you don't want a reverse mortgage, but could use a little more gold for those golden years, consider these alternatives:
- Sell or downsize. Want to keep the family house? Maybe consider selling to your kids.
- Get a part-time job.
- Have you done everything possible to reduce your expenses? Sites like Benefitscheckup.com can help you quickly discover if you’re eligible for help with food, medications, utilities, healthcare, and a host of other expenses.
- Qualify for discounted property taxes? Call you county assessor’s office and find out.
Even if you do decide that borrowing is your best bet, traditional sources like, regular mortgages, could be better than reverse mortgages. It just depends on your situation.
Bottom line? Reverse mortgages could be good for some seniors, but not for all of them.
For more information, visit moneytalksnews.com.
