Reverse mortgages let a homeowner borrow against home equity at age 62 or more. The loan doesn’t have to be repaid until the owner moves or dies. But years of misleading marketing and other problems have given these mortgages a bad name.

New rules are expected to clean up the system. Worst problem in the old days was when the loans were made in the name of the older spouse alone; when he or she died, the surviving spouse had to pay up or leave. New regulations let the spouse remain in the house as long as it is her primary residence and she pays upkeep, taxes and insurance. The downside: with a younger spouse who is expected to live longer, the payout is smaller.

Upfront costs are steep, whether you get lifetime payments, a lump sum or line of credit. Some borrowers like the idea of credit they can tap instead of selling investments. And before investing in the reverse mortgage, be sure you’re staying put.

For nearly 30 years, Mike Nickerson has owned and managed a small, full-service accounting practice in the Midcoast. He holds a bachelor's degree in accounting from University of Southern Main and a master's degree in financial planning from Bentley University.

He is a past board member and president of the Maine Society of Certified Public Accountants and currently serves on the Maine Board of Accountancy.

An aged rock musician, Nickerson now finds musical enjoyment playing upright and electric bass in a variety of bands spanning folk to jazz music genres. He and his wife have three grown children, and they enjoy their free time hiking, kayaking, golfing, bicycling and motorcycling.

http://www.nickersonpa.com/