If you’re short on cash in retirement but do have equity in your home, you might want to get a reverse mortgage, says Jane Bryant Quinn, author of How to Make Your Money Last: The Indispensable Retirement Guide. New rules for reverse mortgages have removed some of the pitfalls that made them problematic in the past.
A reverse mortgage is a loan against the equity you have in your home. But unlike the case with other home-equity loans, a reverse mortgage doesn’t have to be repaid until you move out of your home. The minimum age for obtaining a reverse mortgage is 62.