You work for 30 years and take part of your income to put away for emergencies, kids college, and retirement. Perhaps in the form of a savings account, stocks, 401K's or a pension plan.

You purchase a home for $200,000. You make a mortgage payment for 30 years. You pay off the mortgage. When you took out the loan you received a "TALC" Total Annual Loan Cost. This document explains the interest charged over this 30 year period. This is the cost to you for borrowing the money to purchase. The purchase price plus the cost of interest paid is probably $400,000. You have paid an additional $200,000 to purchase your home.

I don't believe the equity in your home should be used as an ATM. However, what are you going to do with it? Continue to live there with no mortgage payment and leave it as an inheritance for your children/grandchildren? That is one plan.

Buying a home, paying it off, and never touching the equity is a State of Mind. This is an Investment that can work for you. Another plan may be to use this Investment. Perhaps to supplement income, pay for medical costs, buy a family vacation home.

If you are going to buy the pie, wouldn't you like to have a slice? If your plan is to leave this as an inheritance you can enjoy how this inheritance is put to use. Unfortunately, no matter how well you taught your children or grandchildren about the value of money, sometimes when they receive a huge chunk of it they get a bit giddy!

Wouldn't it be nice to pay for a college education and go to the graduation? Perhaps you stipulate that you will pay each of year of college as long as a B- grade is maintained. The incentive for the student is to work hard and make you proud. How nice would it be not to have student loans that will take 10 years to pay off? Or, with the housing prices so low which makes a mortgage payment more affordable for a first time homebuyer, you may want to gift your children or grandchildren the downpayment.

After 30 years of paying on a mortgage you don't want to start making a payment again, and it is possible that you won't qualify for a mortgage today. A Reverse Mortgage may be a plan. For more information on how a Reverse Mortgage works, the facts vs myths please visit my website www.Julie4ReverseMortgage.com or http://www.facebook.com/liveyourretirementdream