For many of us retiring at age 62 is not an option or we just need to wait a little longer because we don’t have quite have the desired nest egg we originally planned for.   When or if you have retired, the cost of living may have increased and you may need to offset a few expenses in order to ease the burdens of your mortgage and bills. If this is you and you own your home there are few options to consider.

Reverse Mortgage– A reverse mortgage eliminates your mortgage payment and can pay you.  Although, it is not an ideal option for everyone, but if applicable it can be a very powerful tool.  Depending on the amount of equity you have in the home or if you own your home outright then this is a viable option if you are needing funds.  This is definitely something you will want to discuss with a financial advisor and your lender.  Just beware of predatory lending!  Don’t be pushed into a loan you are not comfortable with. Make sure you get all the facts your lender discusses and educates you on the loan.

Change the term or your mortgage– You may have already changed your term into a 10 year or 15 year but what if you are forced into retirement early or your retirement funds were needed for unforeseen medical expenses or any other unforeseen needs?  Then it may be worth getting back into a 30 year mortgage to lower your costs.  Conversely, if you are 55 you might want a 10-year loan to set up for retirement at 65.

Consider an adjustable-rate mortgage (ARM)– If you are planning on paying of your home in the next five to seven years than an ARM will keep your payments ultra-low and maximize retirement savings.

Of course, all of these options need to be discussed with your lender and a financial advisor, but these are items to consider if you are planning to retire or have retired and are needing help to ease some living expenses.