Reverse mortgages made the cut in a recent article from CNBC that explores several ways to tap one’s home for money in retirement.
The article lists four methods that can allow retirees to leverage their homes during retirement, including using a reverse mortgage, borrowing against the house via a home equity line of credit, renting out the house to share expenses, and lastly, downsizing.
“Borrowing against your house or renting it out to generate income can be viable retirement strategies,” writes CNBC. “If the Federal Reserve begins to raise interest rates—a shift that many expect to see this Thursday—Americans who need to bolster their retirements should look at their options sooner rather than later.”
On the topic of reverse mortgages, CNBC references the book “Falling Short: The Coming Retirement Crisis and What to Do About It” by Charles D. Ellis, an investment consultant, and Alicia H. Munnell and Andrew D. Eschtruth of the Center for Retirement Research at Boston College—which suggests that reverse mortgages could be an option for many Americans who cannot afford to retire.
Read more at CNBC.
Written by Jason Oliva