SPONSORED CONTENT By Val Begalle, Cherry Creek Mortgage Company

More people than ever are choosing to age at home with a reverse mortgage. The reverse mortgage lets homeowners age 62 and older convert part of the equity in their homes into tax-free cash without having to sell the home, give up title, or take on a new monthly mortgage payment. (Homeowners must remain current on applicable property taxes, homeowner’s insurance and HOA dues.) Most people are supplementing their income, eliminating a monthly mortgage payment, creating a nest egg or paying off debt so that they can retire with more money, more security and less stress.

My mother took out a reverse mortgage several years ago. She lived in a duplex and used the reverse mortgage to pay off a $40,000 mortgage and all of her credit card debt, and she still had a good size nest egg to fall back on. I’m not sure how we could have helped Mom stay in her home without the reverse mortgage. She had been living on $1,200 per month with little savings and gave herself a $700 per month raise. She was actually able to save money after the reverse mortgage instead of incurring debt on her credit cards. She had the money to keep up her home, buy appliances and furniture when needed, and even hearing aids.

Mom had severe hearing loss and scoliosis, and my brothers and I knew she would need in-home care. The extra money in the line of credit from the reverse mortgage paid for her to have part-time in-home care every day. We knew there was a chance that there would be no equity left in the home when she could no longer live there, but we also knew that the reverse mortgage loan balance would be repaid out of the proceeds of the house and not from any other assets.

The reverse mortgage is a non-recourse loan, meaning the house itself was the only asset that could be used to pay the loan back, releasing my brothers and I from that responsibility.

My mother remained the homeowner, and she could sell and move any time. The downside was that the loan balance gets larger because the borrower is not making any payments. However, if any of us wanted her townhome, we could have obtained our own loan and paid off her reverse mortgage.

Those with a reverse mortgage can be out of their home for up to a year before the loan comes due. Interest rates remain low, home equity is up, and folks are trying to retire on limited funds. For some, a reverse mortgage is their saving grace.