Reverse Mortgages

There are at least one type of loan from his mother's age actually helps you get more money than otherwise: a reverse mortgage.

Reverse mortgages allow seniors to tap the equity in their homes and receive a lump sum or a monthly check. The older you are, the greater the amount that you normally can get. If his mother's house is worth $ 200,000, for example, could increase their monthly income to $ 699 to $ 777 with a reverse mortgage. If it is 10 years younger, the amount you get could be as low as $ 319 a month.

These payments will continue until she dies, sells the home or permanently moves, at which point the loan must be repaid. Normally, the return comes from income from the sale of the home, any remaining value in the house to go to his heirs.

AARP has a free booklet on reverse mortgages called "Home Made Money" that can be downloaded from its website (www.aarp.org) or order by calling (800) 209-8085. It also takes a look at Tom Kelly's book, "The New Reverse Mortgage Formula" (2005, Wiley Publishing) to assist in the evaluation of the various reverse mortgage products.