We’ve previously posted about some of the positive aspects of utilizing home equity in retirement. An article at interest.com (Will You Ever Be Too Old To Get A Mortgage?) contains some additional ideas for retirees considering leveraging their home equity:

For decades, most homeowners hoped to have their mortgages paid off by the time they hit age 65. Today we have 65-year-olds refinancing or taking out second mortgages. This is not to say there is anything necessarily wrong with that. But the closer you are to retirement age, the more care you need to take when you sign a mortgage or any other long-term commitment, financial or otherwise.

With your house serving as collateral for a loan, the lender is protected. The question is: Are you? As we get older, we can expect our needs and incomes to change. Pension plans, retirement accounts, savings, 401(k)s, IRAs and Social Security may become factors, as can part-time work.

Since we can’t predict the future, we should plan using reasonable expectations of the future. So you must ask yourself how comfortable you are with the idea of having to make a monthly mortgage payment once you have retired. What other expenses-both major and minor-do you think you’ll be carrying at the time? What sort of debts will you have? Do you think you’ll still be able to work? What is your health like today and how much does your healthcare cost, including prescriptions? Do you have any indication of what it will be like in five, 10, or 20 years? What sort of income from any and all sources can you reasonably expect to have to pay for it all?

Of course, aside from traditional “foward mortgages”, seniors have available another option: “reverse mortgages“.