Reverse Mortgages

This is a way to get tax free money out of the equity you have in your home if you need the cash. Also it does not increase your medicare payments like taxable payments out of your retirement accounts might. One disadvantage is that it reduces your children's inheritance since when a reverse mortgage comes due when the homeowner dies or sells the home the lender gets his loan back plus interest. The homeowner can receive benefits this way as a lump sum, monthly payments over his lifetime, monthly payments for a specified period, or as a line of credit. It is very flexible. You usually can't get 100% of your equity but some smaller percentage like 50%.  You still have to pay property taxes and homeowners insurance.