This Week's Topic: REVERSE MORTGAGES

A reverse mortgage permits an older home-owner (you have to be at least 62) to obtain funds from the equity in their home tax-free and without the stress of having to repay the loan until the home-owner dies, moves or sells their home.

If you want to give the home to your children, discuss the use of a reverse mortgage with them before jumping into it. It may make more sense for them to buy the home from you now on an installment sale to provide you with income while retaining a life estate to protect yourself from legal problems of your children..

A few web-sites to learn more are located at www.reversemortgage.org and www.aarp.org/revmort

The AARP site also features a calculator to help figure out how much you can get from a reverse mortgage based upon your own situation.