Drawing down equity on home frees assets, carries downside risk
Before getting a reverse mortgage, Jo Ann Miller and her husband, Carl, were living modestly on Social Security and carefully watching their spending.
They had no pensions to fall back on and weren’t able to save much while they were working. But they had equity in their San Mateo townhouse.
Since the Millers obtained a reverse mortgage, which allows them to draw money from the equity in their home, they feel like they have some breathing room to live better.
With the extra money, they bought a hybrid car they wanted in order to help the environment, and they’re extremely excited about a monthlong vacation they’re taking this summer to Australia.