• Question
  • I have quit my job (age 72) so our income has dropped.

    Asked by a 76 year old woman from Blair, NE on 2/17/2016

    We have checked into Reverse Mortgage's but do not want to go this way. We still owe $78K on our current 15 yr mortgage. Would we be better off to refinance and get a new 30 yr mortgage at a lower monthly cost? My husband works part time and we, of course, have our Social Security. Pls advise and thank you. Our son thinks we should sell and live in an apartment and use the money for living expenses, but we do like our house and have It just the way we want it.

  • Categories: Retirement Planning, Retirement Calculators


  • Steve 


    San Francisco, CA

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  • Good question.

    You can model the potential impact of re-financing vs. using a reverse mortgage using this retirement calculator.


    One thing to note about a reverse mortgage is that you can make payments on it just like a forward mortgage, so that you pay down your principal. One unique thing about a reverse mortgage is that they can come with a line of credit that
    1) Can't be taken away
    2) Grows with time - even if your house value drops (this is a pretty unique way to hedge your home equity)



    Please note - this is not a recommendation or advice - you should talk to a fee only financial advisor who has a fiduciary relationship with you about your situation.

  • Login to rate this answer:   Answered on 2/28/2016
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.