Seniors in the United States are sitting on a whopping $7.19 trillion in housing wealth. Although it wasn’t part of balanced retirement plan, reverse mortgage could be an effective way of funding retirement. Tapping home equity can help generate income and hedge against possible correction in the housing sector.

When looking for additional source of retirement income, some retirees may opt to downsize, relocate to an area with lower living costs, or use assets from their retirement account. However, many do not want to put up their houses in the market nor do they want to sell their investments.

One great solution is reverse mortgage, which provides homeowners who are at least 62 years the ability to tap into their home equity so they can meet their retirement goals.