Some financially savvy homeowners manage to make extra mortgage payments or pay a little more each month in order to live debt-free in retirement. But, you may not have the extra cash to pay down your mortgage at age 65. In fact, the Employee Benefit Research Institute reports 40% of households headed by individuals age 55 and older carried mortgage debt in 2007, up from 24% in 1992.

While some seniors plan to pay off their mortgage in full to ease their cash flow, you have plenty of other options:

• Keep paying: If your mortgage is $100,000 or more, you can keep paying it slowly and continue receiving the tax deduction on the interest you pay
• Refinancing: Mortgage interest rates are historically low. So, you can save hundreds of dollars per month. But be sure that you are actually saving money by refinancing by consulting a refinance calculator
• Home equity loans and home equity lines of credit: They typically carry an even lower interest rate than mortgages. But, you need considerable home equity, and qualifying can be difficult
• Reverse mortgages: A reverse mortgage, available if you're age 62 and older, can be an excellent way to gain access to the equity in your home. The borrower receives a guarantee that you'll stay in your home until you pass away or are ready to sell. Reverse mortgage guidelines can explain how much you may be qualified to borrow. Qualifications depend only on your age and the property's equity. Reverse mortgage lenders can discuss your options, including a line of credit, a lump sum distribution, or monthly income
• Remodel your home: Home improvements may enhance your quality of life and can also increase the value of your home. Finishing a basement, replacing the roof, and replacing the front door are some of the most financially rewarding improvements

If you're a homeowner, you spend most of your life paying money to your lender. It may make sense to someday reap the rewards of home ownership through a reverse mortgage or home equity loan.