Sometimes borrowing money is necessary.
You need money.
You are at least age 62.
Your home is not heavily mortgaged.
Someone mentioned a reverse mortgage may be a good option for you.
Perhaps it was Tom Sellack.
What is a reverse mortgage?
According to a recent Fed Week article titled “Considerations for Borrowing in Retirement,” reverse mortgages allow seniors to receive tax-free cash with no payments due until you move or die.
You can use them to pay off your regular mortgage on the home, make repairs, pay health care bills, or take care of daily expenses.
For those who do not plan to pass the house to heirs, it can be quite helpful.
What if you want your children to inherit the home?
You will need to consider the implications.
They can keep the home, but they may need to take out a mortgage to pay off the reverse mortgage.
If you move or sell the home while alive, you will owe the money for the reverse mortgage.
What are things to consider?
Reverse mortgages are expenses.
Although your reverse mortgage is insured by the Federal Housing Administration (FHA), you will need to pay insurance, property taxes, and maintain the home according to FHA guidelines.
There may be other option than taking out a reverse mortgage, including taking loans again your securities portfolio or life insurance.
Before you act, discuss your options and your situation with your experienced estate planning attorney, elder law attorney, or financial advisor.
As with all things financial and legal, look before you leap.
Reference: Fed Week (May 16, 2019) “Considerations for Borrowing in Retirement”