Reverse Mortgages to the Rescue
By Mary Beth Franklin
Published August 2009
Kiplinger's Personal Finance magazine
Reverse mortgages have been around for nearly 20 years, but it wasn’t until the current financial crisis that they caught on. Seniors are turning to these loans to tap the equity in their homes and generate tax-free income to help them ride out hard times.
For Frank and Carol Rider, a reverse mortgage 
is providing a cushion, giving their investments time to recover from
the bear market. The Riders, both in their early seventies, borrowed
about $200,000 against their home in New Mexico. They used the money to
pay off their traditional mortgage and to take $1,500 a month for the
next 20 years to supplement their pensions and Social Security
benefits. “We’re trying to maintain our lifestyle,” says Frank, noting
that he and Carol travel extensively year-round.
