Quote from Monte Howard from the book "Fiscal Fitness"

Chapter 10

Step 7: Tap Your Home's Equity - You've Earned It!
Dead equity is like dead calories. It's no good for you. – Matt Rettick

Equity is all about value and ownership. When talking about a house or condo, equity is the value of the property that belongs to you, minus any mortgage due on the home. When referring to an investment, equity is that portion or share that's yours. Don't be afraid of your equity in anything. It is, after all, yours. You've worked for it; you've earned it. It's your money, your asset, your equity.

A big part of becoming fiscally fit is to understand what your equity - as in your home – can do to help you, and then how to make the right choices so that it works hard for you. Ideally, you want to make the most of your equity while keeping the safety and security of yourself and your loved ones in mind.

A reverse mortgage, available to those homeowners age 62 and above, can accomplish just that, especially when it comes to preserving affordable quality of life and remaining in your own home as long as possible.

Why Consider a Reverse Mortgage?We've all heard it dozens of times: Probably the largest purchase any of us will ever make is our home. Most people work a lifetime, tap their savings, borrow huge sums, and pay tens of thousands of dollars in interest for the privilege of home ownership. It is, after all, a huge part of the American dream. In fact, 81 percent of householders age 65 and older in 2006 owned their home (U.S. Census).

Because owning that home has taken so much effort to achieve, why not let that home make life easier for you in your retirement? A reverse mortgage can provide cash to help fix up your house or fund your care if you're chronically or catastrophically ill. It can give you the wherewithal to remain in your home for your lifetime instead of being forced into a nursing home. Conversely, it can pay for nursing-home cost, thus allowing you to avoid dependence on Medicaid and keep you in control of you life.

A reverse mortgage is a nonrecourse loan – you don't have to qualify and you don't have to repay the money during your lifetime. It's available to those ages 62 and older who live in and own their home. Even if you home isn't paid off, you could be eligible for a reverse mortgage. Remember, it's based on your equity – your ownership share. You or your spouse can't be kicked out of your home either, even after the term of the mortgage runs out.

A reverse mortgage is for life. It has no term, so no matter how long you or your spouse lives in your home, there will be no requirement to repay the reverse mortgage as long as taxes and insurance remain current. – Monte Howard (Mountain States Mortgage Centers)