Reverse Mortgage Alternatives

Reverse Mortgage Alternatives

A HECM reverse mortgage can be a great solution for senior citizens but there are other options available if you are looking to lower your bills or create cash flow.

Sell the Property

By selling your home, you can use the proceeds to go towards a purchase of a smaller home with a lower monthly payment. This kind of scenario will vary depending on the real estate market. For example, right now in Colorado(April 2014), property values have sky rocked. If you sell your home for a higher price, expect to purchase another one for a high price as well.

Home Equity Line of Credit or Refinance your Mortgage

Getting a mortgage or a home equity line of credit (HELOC) is kind of like getting a big credit card on your home. You can use the line of credit as you choose. The downside to this type of loan is that there will be a monthly payment plus it’s much more difficult to qualify than a reverse mortgage. This can be a great option for people who have stable income but need to borrow a little extra money from time to time.

Rent Out a Room/basement

If you are comfortable enough, you can rent out an extra room or basement area. Maybe you have family that would be willing to move in and help with the mortgage and other obligations. This is probably a worst case scenario but it’s something to consider

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