Ever heard about a concept for homeowners called the Reverse Mortgage ?
 Well it has been around for a number of years and is promoted as the answer to your income problems using your home as the source of funding.
 Sounds pretty good -get income from your homes equity while staying put and enjoying what you have paid for already.
 For some people , it is the answer to their dreams , but for some it could be creation of a nightmare if they do not understand the way it should be used .
 Specifically , the reverse mortgage rates are higher than conventional mortgage rates and there are fees and penalties attached if you want to pay the loan off earlier.
 Another thing is that the equity you have built up in the home is being eroded by the loan and if the value of the home does not continually go up ,you could lose out eventually.
 Some people are not using the program properly and just paying off other debts with the funding thus causing the debts to just move to another spot in the program .In short , your paying your debts in an expensive way and not really using it as planned .
 As for the estate , the debt on the home could cause the equity to be reduced to the point that little is left and the heirs may be not getting what was intended by the homeowner.
 Of course , like all financial plans , options and future goals along with the needs of the owner must be considered and thus other routes should be looked at.
 For instance , lines of credit could be obtained at a lower rate and with limited or no cost .Insurance could be tapped for cash values and estate planning . One could also just sell the larger house and turn the equity into financing a lower cost lifestyle or a smaller home ,thus eliminating even looking at a loan altogether.
 In summary , one must be sure that just because someone is pushing the idea of using your home to earn income , it makes more sense to have an advisor give you the pros and cons of each option so you can make an informed decision .