Alternatives to Reverse Mortgages
November 17th, 2009
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Reverse mortgages can help improve your overall cash flow by tapping into your home equity. Funds from a reverse loan can be used for any purpose, giving you a lot of flexibility for spending and saving it. But if you are someone who is averse to taking out a reverse mortgage loan but needs extra cash, there are some alternatives to consider.
Stay in the Workforce
Like most people, you’re probably looking forward to retiring one day. In fact, you may already be retired and just want to enjoy life without having to stick to a work schedule. But the fact is that if you are having trouble stretching your income, you may need to consider working at least part-time. About 6.6 million Americans 65 and older are in the workforce today, compared with 4.1 million in 2001, according to the New York Times. Even some folks who’ve taken out reverse mortgages may continue to work to feel more secure.
Start a Home-Based Business
If looking for a job doesn’t appeal to you, consider starting a home-based business. You probably have all kinds of skills that can help launch a business. Remember, if you don’t enjoy the venture you start, you probably won’t stick with it for very long.
Look for Grants and Special Programs for Seniors
Many communities offer tax breaks for senior citizens or other programs to ease their financial burdens. Contact your local government and the Department of Aging in your area to find help. Don’t forget to contact utilities to see if they offer any assistance with your bills.
Finally, consider renting a room or sharing a house with a boarder. A tenant can help pay for your housing costs and keep you from having to borrow money through a reverse loan, home equity loan, or refinance.