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Life is expensive, and it doesnt get any cheaper as you get older.
Theres more than one way to do it, but first, hereshow a reverse mortgage works.
What Is a Reverse Mortgage?
A reverse mortgage is a loan for homeowners aged 62 and older that turns their home equity into cash.
The loan first pays off your mortgage.
Then, the rest of the money can be used however you want.
However, a reverse mortgage comes with some cons, like high fees.
If you dont think a reverse mortgage is right for you, there are some solid alternatives.
Here are four ways that retirees can access their homes equity without a reverse mortgage, according toUnisonandRocket Mortgage.
Maybe you dont use your basement, or perhaps you have spare rooms that you dont need.
Renting out your space to short or long-term tenants can provide vital cash flow to help cover retirement expenses.
With interest rates dropping, refinancing your mortgage now could help you get a lower rate.
However, a HELOC loan carries risk.
Otherwise, youll be putting your home in jeopardy.
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