Moving Forward With Reverse Mortgages

Homeowners are divided into two categories: those who carry the largest mortgages possible, and those who work to pay the loans off as soon as possible.

In addition to getting rid of a big financial headache, there's now even more of a reward for being a part of the second group.

Using a "reverse mortgage," the estimated 10 million seniors who have paid off their mortgages can now create a monthly "pension" check that will last as long as they live in their home.

Reverse mortgages allow older homeowners to convert part of their home equity into tax-free income. These plans are catching on -- but slowly. That's because seniors who had the good sense to pay down their mortgages are now hesitant to borrow against that home equity to supplement their monthly income. ...