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Cambridge homes that are free and clear offer some unique financial possibilities and if you’re a retiree or find yourself short of cash but the mortgage has been paid off, a reverse mortgage can seem tempting. However, you need to remember that these are essentially taking out a loan against your home and so for that reason alone many experts suggest that you look at some of the other choices that you have to get some additional cash from your Cambridge home.

1. The first alternative is the most obvious. If you’re finding that the home you’re in presently is too big or that you can get by with a smaller one, a great move is to sell the place and buy a more modest dwelling. Remember that things like excessive property taxes can be a drain on a retiree’s income and you can generally find Cambridge homes that are geared to smaller incomes.
2. Another way to avoid the need for a reverse mortgage is to rent part of the property out. The income from a rental will increase the amount of cash that you’ve got coming in.
3. Finally, one of the other methods that is becoming more popular is establishing a home business. This is a way to make part of your home expenses tax deductible.

However, you still might want to forge ahead and take out a reverse mortgage on your Cambridge real estate. If that’s the case make sure that you consider all the terms of the loan carefully.