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Have you explored other borrowing and housing options?
Homeowners interested in a reverse mortgage may nd that other loans or
housing choices are a better t for their nancial situation or personal needs.
Be sure to look at all of your borrowing and housing options before making
your nal decision. Consider alternatives to a reverse mortgage, such as:
Waiting
If you take out a reverse mortgage when you are too young, you may run out
of money when you’re older and more likely to have less income and higher
health care bills.
Other home equity options
A home equity loan or a home equity line of credit might be a cheaper way to
borrow cash against your equity. However, these loans carry their own risks and
usually have monthly payments. Qualifying for these loans also depends on
your income and credit.
Renancing
By renancing your current mortgage with a new traditional mortgage, you may be
able to lower your monthly mortgage payments. Pay attention to the term of your
new mortgage, as it can affect your retirement plan. For example, taking on a
new 30-year mortgage when you are nearing retirement can become a hardship
later. Consider choosing a shorter-term mortgage, such as 10 or 15 years.
Downsizing
Consider selling your home. Moving to a more affordable home may be your
best option to reduce your overall expenses.
Lowering your expenses
There are state and local programs that may provide assistance with utilities
and fuel payments as well as home repairs. Many communities also have
programs to help with property taxes: check with your county or town tax
ofce. Information about these and other benet programs is available through
the Administration for Community Living, acl.gov.
To learn more about reverse mortgages, visit consumernance.gov/
reversemortgage.