Reverse Mortgages

A new booklet from the Center for Retirement Research at Boston College explains reverse mortgages and the role they can play for promoting financial security in old age (age 62 is minimum age for a RM). PDF available at: http://crr.bc.edu/wp-content/uploads/2014/09/c1_your-house_final_med-res.pdf

"The booklet’s key points are:

• Home equity is the largest store of wealth for retirees and, with reduced support from Social Security and pensions, many more will need it for retirement income.
• The two ways to tap home equity are downsizing and a reverse mortgage.
• Downsizing:
• Adds to your savings, which boosts income from savings.
• Frees up more income by reducing taxes, insurance, and upkeep.
• A Reverse Mortgage:
• Allows you to stay in your home.
• Provides income through a line of credit, lump sum, or monthly payments."