As we continue to age, options for paying for our house, among other personal things, begin to add up. These options can become quite overwhelming if we don’t understand the advantages and disadvantages of each. One of the most popular ways of managing the funds toward our monthly mortgage is the reverse mortgage. It allows seniors to make good use of the hundreds of monthly mortgage payments which has resulted in significant amounts of home equity.

In addition to a reverse mortgage arrangement, a less costly version is available. Known as deferred payment loan (DPL), there are no origination fees and very low closing costs. Interest rates associated with the DPL’s are low as well. Typically, the interest charged on DPL’s is at a fixed rate, so there is never a question about the amount of a repayment.

Deferred payments are not available at all banks and rules for eligibility vary. Also, they are designed to assist mainly low to moderate income earners.

Another option available similar to a reverse mortgage is a property tax deferral loan. It has the ability to offer annual advances which are to be used only to pay property taxes or a percentage of them. As long as the borrower lives in the house, no repayment is required.

Eligibility varies from region to region, and typically has a minimum age requirement of 65. These advances are also designed to assist low and moderate income earners.

There are other options for seniors who don’t fit well with the already mentioned plans. Accessory apartments are an option. This is an arrangement in which a section of the dwelling is turned into an apartment for a tenant to live in. It gives the primary resident the ability to make extra monthly income.

Another option is an echo cottage. In this arrangement, a separate unit is added to the side or back of the original floor plan for another tenant or loved one.

A third potential option is simply sharing the living space with another person. That other person could be a loved one or just another trusted individual.