9 Alternatives To A Reverse Mortgage

MoneyTips

A reverse mortgage allows you to convert the equity in your home to cash that you can use for other purposes. Essentially, you're selling your home back to a lender in increments.

It's a popular method for seniors to supplement living expenses. Repayments don't begin until the owner permanently moves out of the home, passes away, or transfers ownership – as long as the home is maintained and property-related bills (taxes and insurance) are paid.

However, reverse mortgages have downsides, including equity-reducing fees and potential financial burdens to heirs – not to mention running out of equity before you run out of expenses. Consider these alternatives to a reverse mortgage before you commit.

1. Selling/Downsizing – Instead of selling in increments, why not sell all at once? You'll probably receive more of your equity and can use some of those funds toward

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