Downsizing

"I'm just an ordinary 53-year-old woman married for 34 years who is experiencing an amazing time in my life," Trish Cooper says. The outlook wasn't so bright a couple of years ago. "My job of 13 years ended just as the financial markets crashed and I was unable to find another one. It was emotionally draining, but I embraced the opportunity to spend time with my new granddaughter."

It's been ten years since I traded in my time-wasting, too-long, hope-it-isn't-raining commute to a fancy office in the city for the freedom of working virtually from home.

Like many people, as long as I have my laptop and cell phone, I can work from wherever I happen to be, which has included islands in Thailand and beaches in Mexico (that hammock in the photo is my idea of heaven), my friend's homes around the country, and yes, even my own home office.

A late-night commercial for reverse mortgages caught my attention recently because it was specifically marketed to 60-somethings looking for retirement income.

A reverse mortgage, also known as a lifetime mortgage, is available to anyone at least 62 years old, as mandated by the Department of Housing and Urban Development. What it does is allow people to take money out of their home equity, either in a lump sum or in monthly installments.

With interest rates remaining below 5 percent on a 30-year, fixed-rate mortgage the temptation for many midlifers may be to refinance their mortgage. Freddie Mac estimates here that the average interest rate on such a mortgage was 4.3 percent (with 0.8 points paid) in November, compared to 6.2 percent (with 0.4 points paid) in November 2007.

After all, the kids have flown the coop, and refinancing could be an easy way to lower your monthly finances and start saving more for retirement.